MikeCristo8
@MikeCristo8
What did China just do?
They weakened their currency which lowered rates on the yuan 10yr.
China controls the gold price through interest rates.
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If gold drops below $2303 it will signal a failed and left translated daily cycle in progress with many weeks to go still before the next bottom will be due. Those that listened to me with an open mind and took profits will have plenty of cash to deploy at that bottom and huge potential profits during the next rally.
Those that buried their head in the sand and ignored the warning signs will have to endure what could very well be a gut wrenching several months as they take a big drawdown on their metals positions. Many will panic sell at the bottom (especially if there is a bloodbath phase) and then be too shell shocked to pull the trigger on long positions when the time is right.
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MikeCristo8
@MikeCristo8
China now uses interest rates on their gold reserves to weaken the yuan against the dollar, which drives the value of China’s exports higher (China exports more than the U.S.)
While having a stronger U.S. dollar drives the value of American exports lower. (The U.S. exports less)
China doesn’t care about their stock market,
It cares that their citizens have jobs and are working, hence China’s export market.
