Submitted by Ronan Manly, BullionStar.com
The following article is arranged in Question and Answer (Q & A) format. Through the Q & A approach, this article raises some important issues about price discovery in the gold markets and aims to explain the view that the gold price is being set by the paper gold markets.
On Jan 11th, RBC's head of cross asset strategy Charlie McElligott wrote of "THE SINGLE-LARGEST MACRO INPUT RISK TO THE BUYSIDE," where he stated that the USD was the most important asset to the direct of the reflation trade and general macro positioning.
Global markets start the week mixed with Asian stocks rising (Japan was closed for holiday), European stocks sliding, weighed down by declines in oil-and-gas shares and banks, and S&P500 futures also down. The dollar fell to a six-week low, falling four days in a row for the first time since early November as G20 leaders scrap a long-standing commitment to reject all forms of trade protectionism, suggesting the "weak Dollar" camp in Trump's inner circle is winning.
China has often found itself in trouble over the past couple of decades for its attempts to replicate technology from other developed countries. But technological advances aren't the only things being mimicked in China as the country is also littered with fake replicas of monuments from around the world including the Great Sphinx of Giza, the Sydney Opera House and the U.S. Capitol building, just to name a few.
One year ago, S&P futures would tumble the second a flashing red headline noted that things involving China, the Yuan, or the PBOC were not playing out as expected. One year later, the market has forgotten it ever cared about the world's biggest debt bubble.
However, the time may have come to once again start worrying about China.