Chart of the day: All that glitters is not gold
Shanghai gold futures contracts are not the most active, but open interest has risen more than 10-fold since 2008. Interestingly, on Friday they managed their highest weekly close in more than three years, at 283.60 yuan per gram. This is interesting because gold, priced in US dollars, has not managed the same feat. It is a good example of how the value of any currency will affect the price of all sorts of things measured in it. Because the yuan is at its weakest since September 2010, so many commodities in China have rallied this year. Technically, this is a continuation of the rally that started in January and, though overbought, it has further to go.
Nicole Elliott is a technical analyst