Home / Metal News / Copper / Martin Murenbeeld: The Gold Fix, China and the US Economy
Martin Murenbeeld: The Gold Fix, China and the US Economy
Jun 11,2014 09:59CST
industry news
Source:SMM
In the second half of the Investing News Network's interview with Dundee Capital Markets Chief Economist, Martin Murenbeeld touched on the possibility of the London Gold Fix being disassembled.

Tuesday June 10, 2014, By Vivien Diniz - Exclusive to Gold Investing News

In the second half of the Investing News Network's interview with Dundee Capital Markets Chief Economist, Martin Murenbeeld touched on the possibility of the London Gold Fix being disassembled, what role China could play should that happen and what the truth behind the US economy's recovery.

In regards to the London Gold Fix, Murenbeeld explains that "it is definitely a possibility" that it could be disassembled, because regulators "are going to have to figure out some other way to come up with a reference price. We need a reference price."

And while China could definitely have a role to play if the Gold Fix does dissolve, it seems that China could have its own agenda.

"China's base interest is to set up a market where the gold can be traded in yuan-renminbi. In fact, China would like a lot of things to be invoiced in yuan renminbi," he explained.

When asked if the US economy is fairing as well as we are led to believe, Murenbeeld said that the US economy is doing better. However it is important to note, as Murenbeeld highlights that "Better is not best. Better is relative to where it was before. In that sense the US economy is doing better"

Finally, Murenbeeld cautions investors that we are at the "epicenter of seasonal weakness." And while he does expect strength in the price for the latter part of the year, the period from May to August is when gold is most vulnerable.

 

china
gold fix
gold manipulation
gold market
gold price
US dollar
us economy

For queries, please contact Frank LIU at liuxiaolei@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news