The fall of the Chinese currency puts pressure on gold

At a press conference in Beijing, a Chinese central bank official said the country's currency was not expected to devalue further. The People's Bank of China (PBOC) believes that "the strong economic environment, robust trade surplus, strong financial position and deep foreign exchange reserves maintain strong support for the exchange rate." The bank also said it would monitor “abnormal” cross-border flows.

During the week, the yuan has depreciated by 10 percent, which makes the NBK's statement seem frivolous at best. It is quite possible that the Chinese will not allow the yuan to fall further, but experts believe that it is better not to put family jewels on this statement.

The Shanghai Index was down, while the news from China was helped by the DAX and CAC. This and other data pushed US stocks. A rise in US consumer spending to 0.6 percent in July and an upward revision of June figures revived fears of a Fed interest rate hike.

The news from China and renewed concerns about the Fed's rate led to the fact that gold fell by more than $ 10. A slight strengthening of the dollar, which also reacted to the controversial comments of the People's Bank of China, further pushed gold down. Further trading should be intriguing. It will become clear whether analysts and investors really believe that China has done its best for its currency, or whether China's statements are empty rhetoric.