The Weakening Of The RMB Will Affect The Price Of Gold In A Small Range.

　　 World Gold Association (WGC) that nearly 1000 tons of gold in China were used for financing, which made the gold market doubt about China's gold demand. China surpassed India last year to become the world's largest gold producer.

On the other hand, in the past year, a large number of gold from west to East, the gold market for China's accumulation of gold reserves, reduce the holding of the dollar is also speculation.

Some analysts believe that the recent weakening of the renminbi against the US dollar reflects the tightening of China's dollar supply, which will make other collateral, including gold, even more important.

Although at present RMB and Gold price There is no obvious link, but it is considered to be one of the reasons why gold price can not rise.

Investment adviser Joseph Calhoun believes that no accident gold price will continue to fluctuate in a small range, and that it is likely to decline.

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With regard to the phenomenon that the RMB arbitrage broke out due to the fall in the RMB exchange rate, Slott believes that some of the risks currently arising from the market are under the control of the Chinese government, including the forced liquidation and the prevention of the accumulation of most structured products with interest bearing transactions from Hongkong. Although the related products are OTC, the specific losses of many traders are hard to predict. But in the view of the group, they have gained considerable profits in the past several quarters, and the wider or systematic consequences of this phenomenon have not yet been foreseen.

Slott also analyzed the recent policies of the Federal Reserve and the Bank of Japan. "Although the Federal Reserve is gradually reducing its bond buying program, it is worth noting that the US balance sheet will continue to expand as a whole." It is estimated that the total asset purchase size of the Federal Reserve will continue to expand to October this year. Even though the Federal Reserve has cut back on the scale of its purchases, it's doubtful that the United States Federal Reserve will increase interest rates and fluctuate the yield of the 10 year treasury bonds before the third quarter of 2015. It is estimated that the yield of the us ten year treasury bonds will gradually rise to 3% this year.

For the Bank of Japan recently said it would maintain the current interest rate level of 0.10% and the scale of quantitative easing unchanged, and continue to expand the basic monetary policy with the scale of 60-70 trillion yen per year, solo believes that this policy is beyond market expectations. "Many people had expected the BoJ to strengthen QE operations by the end of July, but Japanese government officials said there was no need to worry." Asked about the impact of Japan's monetary policy, Slott said it was too early to talk about the impact. On the other hand, he mentioned that the increase in the price of Japanese companies due to the increase in sales tax shows that Japan's recent inflation risks are upside down, but that does not mean that the Bank of Japan will take a step back from the radical monetary stimulus.