Beholden to the Yuan or a currency pinned facing a collision with China?

China has been importing gold from Hong Kong as data released today shows that imports through Hong Kong for November were up 20% on previous month to 103 tonnes. This means that from Jan – Nov 2011 China’s total imports from Hong Kong stand at 389 tonnes. Apart from these numbers Beijing does not publish any holdings data. Markets view this as a proxy to what Beijing is doing with their Gold holdings.

Comex front month gold trading up $5.00 to $1644.60/oz. The SPDR Gold Trust (GLD $159.67 +$1.03 or +0.6%) has seen its Put to Call ratio fall to 20 month lows at 0.5403 as investors and traders see it as a Safe haven investment. The weak prices have coincided closely with Chinese New Year which this year is in late January – Typically high demand for gold at Chinese New Year.

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