Beijing’s New Power?
Does China Control The World Gold Price? Gold prices may have broken higher in US dollars, but they also appear to have broken their traditional relationship with Federal Reserve policy since they seem to be ahead of the curve of Fed easing. The puzzle may be explained by the current jump in liquidity injections by the People's Bank of China. The PBoC is a key international policy-maker and must be correctly seen as part of the US dollar system. This easing move is equivalent to Fed action, so why wait for Washington? Beijing is already driving gold higher.