![\"10-year](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2016\/2016-08-27-tnx.png?w=525&ssl=1\" "\\"10-year")
<\/p>\nInterest rates are rising. Upward breakout from an ascending triangle formation on 10-year Treasury yields indicates an up-trend.<\/p>\n
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A rate hike from the Fed would increase pressure on the Chinese Yuan, leaving the PBOC with a dilemma. Either allow the Yuan to slide, which could panic investors and borrowers into a rout, or sell off more of its $3.2 trillion foreign exchange reserves to slow Dollar appreciation against the Yuan.<\/p>\n
![\"USDCNY\"](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2016\/2016-08-27-cny.png?w=525&ssl=1\" "\\"USDCNY\\"")
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Long tails on USDCNY indicate buying at the 6.60 support level. Breakout above 6.70 would warn of another advance (decline for the Yuan). <\/p>\n
Rising interest rates increase downward pressure on gold but a falling Yuan would boost demand as a store of value. Spot Gold is above the rising trendline on a weekly chart but expect a test of support at $1300\/ounce. Momentum holding above zero continues to indicate a healthy primary up-trend. Respect of support at $1300 would confirm. Breach of support remains unlikely but would signal trend weakness and a test of primary support at $1200.<\/p>\n
![\"Spot](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2016\/2016-08-27-gold.png?w=525&ssl=1\" "\\"Spot")
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* Target calculation: 1300 + ( 1300 – 1050 ) = 1550<\/p>\n","protected":false},"excerpt":{"rendered":"
Interest rates are rising. Upward breakout from an ascending triangle formation on 10-year Treasury yields indicates an up-trend. A rate hike from the Fed would increase pressure on the Chinese Yuan, leaving the PBOC with a dilemma. Either allow the Yuan to slide, which could panic investors and borrowers into a rout, or sell off … <\/p>\n