Machine Learning

WHY WILL THE YUAN GAIN IN STRENGTH AGAINST OTHER CURRENCIES AS CHINA ACCUMULATES GOLD

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Synopsis

We are living in a globalized world and China is the third largest economy in the world Although China has been a net importer of gold, the Chinese government sees value in gold as a way of diversifying an economy that is currently dominated by exports If China were to accumulate $2 trillion of gold, this would be a lot of money based on the current gold price However, if China were to start purchasing large quantities of gold, this would have a big impact on the gold market The more gold that China buys, the higher the gold price would go China would also be sending a signal to the rest of the world that gold is a valuable asset CHINA IS THE LARGEST EXPORTING COUNTRY IN THE WORLD The United States is the world's largest importing country This is because the United States has a large population that consumes a lot of goods China is the world's largest exporting country As a result, China is a net seller of goods to the rest of the world . China exports $3 trillion of goods per year to the world in 2