news.goldseek.com / Julian D.W. Phillips / 4 August 2017
Overall the dollar was weaker against global currencies, early today. Before London’s opening:
– The $: € was weaker at $1.1881 after the yesterday’s $1.1849: €1.
– The Dollar index was weaker at 92.74 after yesterday’s 92.92.
– The Yen was stronger at 110.02 after yesterday’s 110.66:$1.
– The Yuan was stronger at 6.7200 after yesterday’s 6.7237: $1.
– The Pound Sterling was weaker at $1.3149 after yesterday’s $1.3232: £1
Yuan Gold Fix
New York closed almost $11 higher than Shanghai’s close yesterday. But today, with the ongoing weakness in the dollar, the dollar gold price in London rose. But we need to look at the movement of the Yuan price of gold in Shanghai today to see the movement in the Yuan price of gold. There we see that there is a steadiness in the Yuan gold price in the last few days with only a 1 Yuan movement in the price both ways.
If we look back over the last few days we see that this has been the case even while New York tried to create volatility in the New York price. Earlier this year we pointed out that we expected a drop in the volatility of the global gold price because of the cost of speculating in Shanghai being so much now. Add to this the LMEprecious arbitrage contracts that are now in operation and, no doubt, the arbitrage desks in the large banks.