Gold gains for 4th session as China devalues yuan

12-Aug (MarketWatch) — Gold futures ended higher Tuesday, posting gains for a fourth straight session during a tough day for commodities, which were hit by China’s surprise decision to devalue its currency.

China is one of the world’s largest importers of metals and other commodities and the country’s currency decision raised concerns about the health of its economy. China accounts for nearly one-third of global gold demand.

However, gold traders pointed to possible haven buying from Chinese investors, aiming to offset a lower yuan, as one reason the precious metal was trading higher Tuesday.

“There are suggestions that a Chinese devaluation of the yuan will mean that Chinese investors who have suffered from the stock market blowout and now fearful of further yuan depreciation/devaluation, will opt for gold,” wrote Richard Perry, market analyst at Hantec Markets, in a research note Tuesday.

[source]

PG View: Burned by stocks and fearing further devaluation, Chinese investors turn to gold as a safe-haven. U.S. investors should take heed with Wall Street shares and the dollar both down sharply today as well . . .