Martin Murenbeeld: The Gold Fix, China and the US Economy

In the second half of an interview with the Investing News Network, Martin Murenbeeld, Dundee Capital Markets’ chief economist, touches on a number of topics, including the possibility of the London gold fix being disassembled, what role China could play should that happen and the truth behind the US economy’s recovery.

In terms of the London gold fix, Murenbeeld states that there “is definitely a possibility” that it will be disassembled because regulators “are going to have to figure out some other way to come up with a reference price. We need a reference price.”

And, while China could definitely have a role to play if the gold fix is dissolved, it seems China could have its own agenda. “China’s base interest is to set up a market where the gold can be traded in yuan-renminbi. In fact, China would like a lot of things to be invoiced in yuan-renminbi,” he explains.

When asked if the US economy is faring as well as we are led to believe, Murenbeeld notes that it is doing better. However, it is important to note that “better is not best. Better is relative to where it was before. In that sense the US economy is doing better.”

Finally, Murenbeeld cautions that we are at the “epicenter of seasonal weakness.” And while he does expect strength in the gold price for the latter part of the year, the period from May to August is when gold is most vulnerable.


Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence. 

Related reading:

Martin Murenbeeld: Gold Prices, China and the US Dollar

PDAC: Is China Buying Gold to Eliminate US Dollar as World Reserve Currency?

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