11 June 2014

Gold Daily and Silver Weekly Charts - Consumed In the East, But Priced In the West

"Foreign investors can use offshore yuan to trade gold directly on the SGE international board, which is promoting the internationalization of the renminbi. The international board will form a yuan-denominated gold price index system named 'Shanghai Gold.'

Shanghai Gold will change the current gold market with its 'consumed in the East but priced in the West' arrangement. When China has the right to speak in the international gold market, the true price of gold will be revealed."

Xu Luode, Chairman, Shanghai Gold Exchange, 15 May 2014

And so the price capping continues, in the ritual of confidence, and nothing really happens at the Comex warehouses.   Contracts are stopped, and the bullion gets pushed around the showroom window.

Have a pleasant evening.