Housekeeping: Good Morning.
“Comex is Dying”
Topic:
Golden Yuan Closer To Reality
Russia (War) China (Tariff) Escalations Roil Markets
Market Analysis: Golden Yuan Closer To Reality
The Shanghai Futures Exchange (SHFE) announced sweeping reforms on Tuesday aimed at giving overseas investors and brokers direct access to China's gold and silver futures markets—an aggressive step in Beijing’s ongoing campaign to shift commodity pricing power eastward and Golden Yuan ownership across the BRIC-developed world
Brics 2025: China Builds Global Gold-Vault Network
Housekeeping: We have several posts in the cue on the BRICS Summit. This one is a summary of their agenda as it pertains to next steps towards Gold as a tool of dedollarization and with it internationalizing Yuan use.
The SHFE unveiled 34 new policy proposals designed to "fully introduce overseas participants" into domestic trading, covering areas from hedging strategies to metals options. Critically, the reforms would allow foreign brokers to participate directly, bypassing the current requirement for onshore intermediaries. Additionally, foreign traders will be permitted to post margin in U.S. dollars and other major currencies.
“This announcement is basically a constitutional change for the entire SHFE opening up. Access for foreign investors to all the SHFE products is on a fast track from now on.”— Tiger Shi, CEO of BANDS Financial (via Reuters)
On April 21, the People’s Bank of China (PBoC), along with three other ministries, issued an Action Plan supporting the development of the Shanghai Gold Exchange (SGE) as a global platform, including provisions for overseas delivery warehouses.
Comment: “We accept dollars” will become, “But we prefer Yuan”
Continues here
War Escalations Roil Markets
Ukraine Escalation Deepens Before Turkey TalksKyiv launched high-impact drone strikes deep into Russian territory, hitting airfields as far as eastern Siberia. In response, Moscow carried out one of its most extensive aerial assaults on Ukraine in recent months. The intensified military exchanges raise the stakes ahead of today’s diplomatic meetings in Turkey.
**Comment: Slow-Play is Rewarding Play: Nobody Wants Peace if it helps Donald Trump
Tariff Thaw Refreezes Hopes for renewed U.S.-China dialogue quickly dimmed as Beijing accused Washington of violating their latest trade agreement. The rebuke puts a chill on President Trump’s push for leader-level talks.
***Comment: Bottom line: Stockpiling resumesThis Week:
Related Posts:
Data on Deck: MONDAY, June 2
9:45 am S&P final PM
10:00 am Construction spending April0.2%-0.5%
10:15 am Dallas Fed President Lorie Logan speech
12:45 pm Chicago Fed President Austan Goolsbee speech
1:00 pm Federal Reserve Chair Jerome Powell opening remarks
Auto sales17.3 million
Summary and Final Market Check…
Shanghai buying had been met with western selling furing changhai hours. But last night that did not happen.. we may be beraking out in silver, and are not too far fomr one in Gold. But no hopes up unless OI confirms it
