The current consolidation of the Chinese Yuan against the US Dollar is drawing the attention of many investors. United Overseas Bank strategists, Quek Ser Leang and Lee Sue Ann, note that the USD/CNH pair is trading in a narrow range around 6.77, with a downside bias towards 6.7600 if the resistance at 6.7820 remains intact.
How Does This Affect Gold?
Changes in the Chinese and US currencies can indirectly impact gold prices. China, being a major gold importer and consumer, often sees the value of the yuan affecting its gold demand. If the yuan strengthens relative to the dollar, it may lead to increased gold purchases as it becomes cheaper for Chinese buyers, thereby potentially influencing global gold prices.
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