Gold, the Yuan & Donald Trump

China’s Yuan continues its slide against the Dollar, with USDCNY testing resistance at 6.70. The current retracement is likely to respect support at 6.60, offering a target of 6.80*.

USDCNY

* Target calculation: 6.70 + ( 6.70 – 6.60 ) = 6.80

A depreciating Yuan is likely to drive demand for gold as well as hard currencies. Rising political uncertainty — in Europe, the Middle East and the US — is expected to add fuel to the fire. Strong polling by Donald Trump alone could drive gold to its long-term target of $1550/ounce*. Expect retracement to test the new support level at $1300/ounce. Respect is likely and would signal an advance to $1400/ounce.

Spot Gold

* Target calculation: 1300 + ( 1300 – 1050 ) = 1550

Disclosure: Our managed portfolios are heavily overweight gold stocks.

5 thoughts on “Gold, the Yuan & Donald Trump

  1. Ian Robertson says:

    Thanks for your informative reply.

  2. Ian Robertson says:

    Hi Colin, I am also “long” gold. I am concerned about what appears to be a (bearish) rising wedge in the price of gold, specifically the Australian dollar price of gold, going back over the last twelve months. I am no charting expert so would like to know if you think my concern is valid. Regards.

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