Gold has crashed badly in these last months. And it is still full on shorted.
Very few people noted the correlation between Chinese Yuan and Gold.
This is because the Yuan is pegged to an SDR Basket that contains gold.
China let the Yuan devalue as part of the trade war – but now is reaching the hard limit imposed after the breach in reserves in January 2016.
This new pattern started today as China increased to 20% the obligatory reserves for Yuan denominated derivative trading. So the pattern could soon invert.
investorpolitico 