Dear Friend of GATA and Gold:
Market analyst and former fund manager David Brady, writing again at Sprott Money, observes today that, in devaluing the yuan against the U.S. dollar in recent weeks to offset rising U.S. tariffs, China also appears to be pegging the yuan to a gold price of around 8,200 yuan per ounce.
In his most recent Gold Speculator letter, which has not been posted in the clear, market analyst and fund manager James Rickards reported indications that for many months now, ever since inclusion of the yuan in the basket of currencies that constitutes the International Monetary Fund's Special Drawing Rights currency, the gold price has been holding steady in SDR valuation.
The implication of both reports is that China is at the center of central bank rigging of the gold market so that China, foremost among dollar holders, more easily can obtain the monetary metal to hedge its gross foreign-exchange surplus of dollars, a hypothesis similar to that propounded by the U.S. economists Paul Brodsky and Lee Quaintance in an essay called to your attention by GATA in 2012:http://www.gata.org/node/11373
Brady's analysis is headlined "Gold -- The Chinese Connection" and it's posted at Sprott Money here:
https://www.sprottmoney.com/Blog/gold-the-chinese-connection-david-brady...
CHRIS POWELL, Secretary/TreasurerGold Anti-Trust Action Committee Inc.CPowell@GATA.org
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