China Stock Investment Advisory
Shanghai Composite Index Price Forecast Trade Plan
Low-Risk High-Reward Trade Plan
11/11/19 - Shanghai Composite Index Update
The Shanghai index has sold off almost 2% today with the increasing tensions in Hong Kong.
We contiunue to forecast the Shanghai Composite Index to go higher longer-term. Refer to the Shanghai Composite Index chart above.
10/14/19 - Buy Shanghai Composite Index - 000001.SS
Buy Entry: 2,989.80 to 3,042.94
Stop-Loss: 2,796.02 to 2,891.53
Take Profit Price Targets: 3,353.90 to 3,385.65, 3,756.87 to 3,793.50, 4,005.97 to 4,045.05
China Continues to Buy Gold During Trade War
October 07 2019 - China’s Gold-Buying Spree Tops 100 Tons During Trade War By Bloomberg
Central bank adds bullion for 10th straight month in September.
Beijing ‘needs a hedge’ against its dollar holdings, OCBC says.
China has added more than 100 tons of gold to its reserves since it resumed buying in December, reinforcing its standing as one of the major official accumulators as central banks stock up on the precious metal.
The People’s Bank of China picked up more gold last month, raising holdings to 62.64 million ounces in September from 62.45 million in August, according to data on its website. In tonnage terms, the latest inflow totals 5.9 tons, and follows the addition of about 99.8 tons over the prior nine months.
Bullion hit the highest in more than six years in September as slower growth, the trade war and rate cuts spurred investor demand. Central banks have been major buyers too, especially in emerging markets. Official purchases will likely continue as protectionist policies and geopolitical concerns add to demand, according Suki Cooper, precious metals analyst at Standard Chartered Bank.
“Given strained relations with the U.S., China needs a hedge against its large holdings of the dollar, and gold serves that function,” said Howie Lee, an economist at Singapore-based Oversea-Chinese Banking Corp. “As China becomes a superpower in its own right, I expect more gold-buying.”
The PBOC’s run of bullion-buying has come against the challenging backdrop of the trade war with the U.S. and a marked slowdown in growth at home. While high-level negotiations are set to resume in Washington this week, Chinese officials are signaling they’re increasingly reluctant to agree to a broad deal.
Spot gold rose as much as 0.4% to $1,511.31 an ounce on Monday and traded at $1,505.84 in early London trade. While prices fell 3.2% in September, they are still up 17% this year. The PBOC data were released at the weekend.
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