Gold Today – New York closed at $1,244.30 yesterday after closing at $1,255.90 Friday. London opened at $1,250.00 today.
Overall the dollar was slightly weaker against global currencies, early today. Before London’s opening:
– The $: was weaker at $1.1256 after yesterday’s $1.1199: 1.
– The Dollar index was weaker at 96.97 after yesterday’s 97.25.
– The Yen was weaker at 111.77 after yesterday’s 111.49:$1.
– The Yuan was weaker at 6.8145 after yesterday’s 6.8427: $1.
– The Pound Sterling was slightly weaker at $1.2748 after yesterday’s $1.2751: 1.
Yuan Gold Fix
Shanghai ignored the price action in London and New York. As you can see above, the gold price there has steadily risen in the last three days and adjusted for the gyrations in the Yuan as it suddenly went strong after weakening in the last two days. With both London and New York recovering fast now Shanghai is pulling them up. New York went $16 lower than Shanghai yesterday, but London opened $13.42 lower than Shanghai. If the recovery continues in both London and New York today, we will see more evidence of Shanghai dominating pricing power.
The action on the Yuan corrected our view that thought that the P. B. of C. was allowing the Yuan to weaken. Its sudden strength showed they do not want a weaker Yuan at all and will act accordingly. Those positioning in a weaker Yuan paid a hefty price. We think such actions by them discourage speculative action by punishing speculators with losses.
This post was published at GoldSeek on 27 June 2017.
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