Chinese inflation/interest rates will do ? to PMs?

Weiss

Will it put pressure on gold via global sovereign interest rates as other countries follow suit and paper becomes more attractive, or will it cause gold to go up in price as a commodity?

derryb

If paper becomes more attractive it removes gold buyers from the market

CaptHenway

Perhaps it will make Chinese paper more attractive, while making the paper from the interest-free countries LESS attractive. Somehow I can't see the Fed suddenly reversing course on interest rates.
MOO
TD

derryb

<< <i>Perhaps it will make Chinese paper more attractive, while making the paper from the interest-free countries LESS attractive. Somehow I can't see the Fed suddenly reversing course on interest rates.
MOO
TD >>


A sudden reversely on interest rates by the Fed would most likely indicate it's too late for them to control any upcoming inflation; good for gold and equities, bad for most everything else. Controlling inflation is about the only reason the Fed would raise interest rates in today's economic climate and it will probably be too late when they do.

CaptHenway

<drum roll>

ksammut

Asian stocks rise as China rate hike fears fizzle

Gold and silver up so far tonight.

derryb

Market watch is reporting no action on interest rates but the belief is they are months away. Asian markets UP.

Had to make market watch two words. The bad word screener didn't like the last letter of Market and the first three letters of watch being used together.

Justacommeman

Future rate hikes are baked into the market to some degree. I'm counting on the Chinese raising rates.

FYI- The Yuan is currently at 6.65 to the dollar. If you are contracting to produce something 90 days out in China factories are quoting 6.25 as the exchange rate to protect themselves. A lot of importers will considering buying yuan to finance their future purchases. Regardless, this will cause prices to go up 5% to 10% on all goods made in China to the end use US customer.

MJ