What I Learned This Week

Yuan-denominated gold is at a two-plus-year high, having achieved a golden-cross in November 2018. Will dollar-denominated gold soon follow?

In WILTW October 18, 2018, we noted that yuan-denominated gold futures traded in Shanghai broke above the 200-day moving average, as well as their 28-month downtrend line—possibly signaling further policy easing by the PBOC. Last Friday, Premier Li Keqiang visited the offices of Industrial & Commercial Bank (ICBC), China Construction Bank (CCB), and Bank of China (BOC) in Beijing and met with their staffs. Premier Li urged the big state-owned banks to take full advantage of the tools designed to support private and small-business financing needs. He added that the government will strengthen its counter-cyclical adjustments of macro policies and cut taxes further. Yesterday, Premier Li an…

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