ANALYSIS: GOLDS KEY CORRELATION
In this update, we take a look at the correlation between the price of Gold and Chinese Yuan.
Since the end of 2017, we have seen the correlation between the commodity and the currency pair grow stronger.
When the Chinese Yuan finds support and begins to impulse we see Gold do the same. When the Yuan finds resistance and
starts to move lower. The Yuan here looks to have slightly more room to the upside before finding resistance and we should
expect Gold to test $1350 before seeing any definitive downside as this is such an important zone for the commodity.
Keep a close eye on the correlation as it has proven to be effective over the past year.
Since the end of 2017, we have seen the correlation between the commodity and the currency pair grow stronger.
When the Chinese Yuan finds support and begins to impulse we see Gold do the same. When the Yuan finds resistance and
starts to move lower. The Yuan here looks to have slightly more room to the upside before finding resistance and we should
expect Gold to test $1350 before seeing any definitive downside as this is such an important zone for the commodity.
Keep a close eye on the correlation as it has proven to be effective over the past year.
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