Should PBoC be blamed for the collapse in gold prices?

The graph below shows the yearly growth rate of Chinese currency reserves and the yearly change in the gold price. If the Chinese central banks stops intervening in the currency markets to curb the strengthening the yuan then it effectively is monetary tightening – the FX reserve accumulation will slow as will money supply growth. 

goldFXRChina

 

I will leave it to my readers to speculate whether the People Bank’s of China should be blamed for the drop in gold prices. 

 

Gold nuts! Tell me what is happening!

Gold prices continue to decline. Therefore I ask all of you internet Austrians and gold bugs out there who think that we are heading for hyperinflation what the hell is the reason for the drop in gold prices? I thought you told us that we where going to have hyperinflation?

And while we are at it could you (other) people who are telling us that commodity prices are driven up by “evil speculators” tell me if these speculators now have decided that commodity prices should drop?

 

 

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