Friday, April 20, 2018 AM
The fate of the Chinese yuan remains a key tell for gold and copper - a material drop in valuation could boost gold and depress copper prices. There has been talk from China that currency devaluation may be used as a tool in a U.S./China trade war, just talk for now.
The yuan stabilized below 7 USD/CNY for 2017 and has been trending steadily stronger in the new year. The yuan is slightly weaker than last week at 6.2930 USD/CNY and above the March 26th low (i.e. even stronger level) of 6.2342. A low 1-month yuan volatility of 0.27% is in the ballpark of major currency levels - a healthy sign for the Chinese currency (1-month volatilities of euro, yen and gold*).
Weekly Summary for April 20, 2018 AM
Important charts to watch remain the gold-to-S&P500 or AUSP (see "Chart to Watch" below) and gold in terms of major currencies euro and Japanese yen (directly below). An explanation of the charts below is given in my latest Kitco column:
The Gartman Gold Trade Revisited (Kitco News, 2/14/2018)
Click on the image for a larger size:
Gold euro/yen spread widens again in 2018
Here's a chart to watch for 2018. Click on the image for a larger size:
Colonel Possum & Mariana