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Gold Price Rises After Currency Wars Reignite As China Devalues

DAILY PRICES
Today’s AM LBMA Gold prices were USD 1,116.80,
EUR 1003.23 and GBP 717.18 per ounce.
Yesterday’s AM LBMA Gold prices were USD 1,113.25, EUR 1008.97 and GBP 713.74
per ounce.


Gold in USD - 1 Year
Gold and silver rose on the COMEX yesterday - up 0.5% to $1,108.70 and silver was up 0.6% to $15.34 per ounce.
This morning, gold is 0.85% higher to $1,119 per ounce. Silver is up 0.1% to $15.47 per ounce.
Platinum and palladium are 0.5% and 1% higher to $996 and $610 per ounce respectively.

Gold Rises After Currency Wars Reignite As China Devalues

  • China surprised global markets yesterday by devaluing its currency on concerns about sharply decelerating Chinese economy
  •  We were not surprised as had said that this was likely as the Chinese economic numbers are bogus
  • The devaluation was condemned by U.S. politicians as a grab for an unfair export advantage

Mark Hill via Merck Investments

  • China's central bank set its official guidance rate down nearly 2 percent to 6.2298 yuan per dollar
  • It was the biggest one-day fall since a massive devaluation in 1994
  • The devaluation hit global equities and U.S. oil prices, with investors fearing a new currency war
  • Gold prices ticked higher as the move will increase deflation pressures in the U.S. and could lead to the Fed not being able to increase interest rates
  • As expected - currency wars and competitive currency devaluations are set to escalate once again
  • Gold, silver and tangible assets will benefit once again

Read more on GoldCore.com