Financial Times/Michael Howe/7-6-2020
“When things cannot go on forever, they stop. And so it is with China’s support of the US dollar. Foreigners sold more than $500bn of US government bonds during the second quarter, and perhaps one-third of that was unloaded by Chinese entities. The trend is worth watching.”
USAGOLD note: Indeed, it is …… When gold goes up for no apparent reason, as it did this morning, you begin to look around for hidden reasons why. A good place to start might be the strong performance of the yuan against the dollar over the past two days.
USD/Yuan chart (scale inverted) • • • Courtesy of TradingView.com • • • Click to enlarge
