Gold from the perspective of China’s economic change
“Therefore, we believe that China’s strong economic growth is not conducive to the price of gold. On the contrary, if the downward pressure on the Chinese economy is greater, it will be conducive to the price of gold. From the perspective of historical data, the disappearance of the M1-M2 scissors gap in 2008 means that the decline in business vitality has a drag effect on the economy. In November of the same year, the social finance-M2 growth gap began to turn negative, and the central bank cut interest rates four times in 2008, while the corresponding gold price began to rebound gradually from the lowest point of 138.89 yuan / g in more than a decade.”
USAGOLD note: Some interesting points on Chinese gold demand and future pricing are made in this report originating in Shanghai.
Image: Chinese symbol for prosperity