"China hopes to allow all exporters and importers to settle their cross-border trades in the yuan by this year," the central bank said on Wednesday, as part of plans to grow the currency's international role. In a statement on its website www.pbc.gov.cn, the central bank said it would respond to overseas demand for the yuan to be used as a reserve currency. It added it would also allow the yuan to flow back into China more easily."
Why is this good for gold? Because right now many of these cross border trades are settled in Dollars. This reduces the demand for dollars. The price of the dollar will follow demand downward, while the supply is ever increasing. As the demand and price for the dollar drops, gold will rise.
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