Published: 2019.06.27. The price of gold in China at a maximum of 6 years

The price of gold in China at a maximum of 6 years - Preview

The price of gold in dollars is approaching a very important resistance level. At the same time, the value of the yellow precious metal in RMB has already peaked since April 2013. In many other currencies of the world, gold also shows record values.

Yesterday, the price of gold in the spot market reached $ 1,355 per ounce. Thus, the precious metal comes close to a very important level of resistance. The growth of gold indicates a weakening of the paper currencies in which it is traded, as they are inversely correlated to each other. For example, the value of gold exceeded 300 yuan per gram (9.343.23 yuan per ounce), which is the highest value since April 2013. Is this event a precursor to the rise in world gold prices in dollars or is it just the result of a trade war? between the US and China?

It is worth recalling that 2013 was decisive for the price of gold in dollars. It was then that gold collapsed: first in April and then in June. Before the sharp drop in the cost of precious metals was at around $ 1600 per ounce. After those events, the price of gold began to decline, starting a downtrend.

According to BullionVault, the margin on the value of gold in Shanghai in RMB exceeds London fixing by $ 13, which is 50% higher than the average difference between the two trading floors. This contributes to the fact that Chinese banks and gold dealers are trying to import as much gold as possible into the country.

In other countries of the world, like Argentina, Australia, Brazil, Norway and Sweden, the price of gold also shows new maximum values. How will this situation affect the world price of gold in dollars? Can it overcome the resistance level between $ 1,350 and $ 1,370 per ounce? Or investors again to prepare for the correction?

From a fundamental point of view, in addition to the trade war between the US and China, financial markets are influenced by the attack on oil tankers. States accuse Iran of this attack. In the case of an escalation of the conflict, the price of gold may receive an additional impetus for growth.