As we’ve said, if there’s one thing that might possibly get the world off of the competitive devaluations merry-go-round, it would be a move on the part of China to hike the yuan.
And if the world’s central banks got off that merry-go-round, that’d be the worst news for precious metal bulls.
And so, no surprise that China’s slight move to hike rates — its first since the crisis — is crushing the precious metals.
For what it’s worth, we predicted last month that this would be the kind of headline that’d be very bad for the precious metals, so today’s action would seem to vindicate that.
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