Yes ,As Expected GOLD ,SILVER on Fire…………(Without Strategy not possible to Mint Money )
GOLD SPOT :All Eyes on $ 1190 …Above this level more FIREWORK !!
Gold entered the New Year in a downward trend. In 2016, prices of the yellow metal have continued to drop, for the fourth year in a row. The last time such a trend was registered was between 1988 and 1992.
A drop in global gold prices was advantageous for China, the world’ biggest importer of gold bars, gold investment coins and refined gold. At the same time, by the end of 2016 gold prices were on the rise, with an ounce adding nearly six percent in dollar equivalence. In mid-2016, bullion prices jumped by 25 percent and higher. Then, gold dropped, but the dollar-denominated yield of gold is still higher than that of dollar deposits in banks. Thus, China found itself in a two-dimensional situation. On the one hand, Chinese gold buyers can now easily enter the global market due to the decrease in prices. On the other hand, gold holders, including the People’s Bank of China and private customers, can take advantage of the slow recovery in the prices.
In a bit to curb capitals outflow from China, the government restricted gold imports. Banks licensed to perform operations with the precious metal have faced problems with importing it. Thus, the world’s biggest consumer of gold can influence global prices, said Andrei Vyazovsky, Vice President of Russian gold investment company Zoloto MD.
“Those restrictions alongside a currency reform in India resulted in a drop in global gold prices. They dropped below $1,200 per an ounce and settled at $1,130. At the same time, what Beijing is doing is not an official financial policy. The measure is applied on a case by case basis. It seems that Chinese authorities want to analyze the impact of those quotas on capital outflows,” Vyazovsky told Sputnik Chinese. However, the expert suggested that Beijing is likely to ease or lift the restrictions in 2017. “The Chinese government eyes a global gold trading center in the country. Moreover, the Shanghai Gold Exchange is ramping up. So, any administrative restrictions would have a negative impact on those plans,” he pointed out.
Via Reuters, news from further People’s Bank of China efforts to cut capital outflow
- PBOC guidelines will require Chinese firms lending yuan overseas to register with FX regulator
- Guidelines will only allow Chinese firms that have been established for at least one year to make overseas yuan loans
Reuters citing unnamed sources
The FX regulator referred to in those headlines is the State Administration of Foreign Exchange (SAFE)