Gold price succumbs to weakening yuan

Gold Price remains on slippery slopes. Coronavirus-related lockdowns in China are set to continue weighing on the yellow metal, economists at TD Securities report.

“Gold prices are succumbing to a weakening yuan as China’s worsening COVID-19 outbreak saps the buying impulse from yet another pillar of demand for bullion.”

“With little over a week remaining for the Fed to hike by 50bp and to begin quantitative tightening as we expect, demand for bullion from the investor community is likely to ease.”

“Shanghai’s reinvigorated appetite for the yellow metal has helped to support prices, but a weakening yuan should translate into less demand from this cohort.”