Commodity Trade Mantra

Posts Tagged ‘Currency War’

The Dollar Will Not Be Overthrown in October (Part II)

The Fed’s talk about raising interest rates is making the dollar stronger, but it’s also making the yuan stronger due to the peg. China has to tighten its monetary policy by buying yuan & selling dollars to maintain the peg, at a time when China is slowing & should be easing, not tightening, policy. So finally, China threw in the towel and broke the peg to the dollar on August 11.

Did China Kick-Start A New Bull Market In Gold?

There is reasonable chance that China kicked off the bull market in gold. China ‘de-pegged’ in a way its currency from the dollar. The second biggest economy in the world, which is on its way to become the biggest economy worldwide, did say ‘goodbye’ to the dollar reserve currency. Because of that, it is now, more than ever relying on its ‘real’ monetary reserve – GOLD.

Chinese Devaluation Extends To 3rd Day - Yuan Hits 4 Year Low

Having devalued the Yuan fix by 3.5% in the last 2 days, China did it again, shifting Yuan to 4 year lows. While confusion reigns over why PBOC would intervene at the close to strengthen the Yuan last night, the reality is the commitment isn’t to a devaluation for China’s exports, but its actions are directed toward trying to keep the wholesale finance interfaces somewhat orderly.

India, Russia And Thailand Prepare For Currency War

When China sneezes, the world catches a cold. Alternatively, when China devalues, the rest of the (exporting) world scrambles to not be the last (exporting) nation standing, and to do so next, before everyone else does. Case in point, at least three major emerging market nations announced they are bracing for a currency war.

Will the "Shanghai Fix" fix the Gold Market?

If the gold market has reached some sort of watershed wherein the amount of available gold begins to dwindle and possibly dry up entirely, then China’s strategic economic interest would best be served by higher global bullion prices – the so-called second leg to its long-term gold market strategy.

Is Russia Planning a Gold-Based Currency?

Repercussions of Russia on a gold-exchange standard would be immense. A gold standard would be politically appealing, transforming ruble to a formidable currency & reducing outflows significantly. As a pro-gold stance is anti-dollar, speculation about how US would react raises questions of whether an all-out currency war would follow.

Erosion of Trust Will Drive Gold Prices Higher

An erosion of trust means that people are less willing to accept the counterparty risk that comes with financial assets that occurs during financial busts. People as a consequence move their wealth into tangible assets, like farmland, oil wells or in tangible forms of money, which means gold.

Six Reasons Why The Government Is Destroying The Dollar

These six powerful motivations all exist simultaneously, they all wrap around each other in their numerous interrelationships, and they all reinforce each other. Together they constitute an overwhelming incentive to make sure that a dollar does not remain worth anything.

Gold, Investing and the Global Economy

How central banks are setting the investment agenda… TRANSCRIPT of an interview with Zephyr Management’s Jim Awad by Hard Assets Investor‘s Mike […]

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