The close correlation between Gold and the Chinese Yuan has broken and this has triggered a bullish breakout for XAU/CNH, says Sejul Gokal, Chief Technical Strategist at GO-TechniKAL Insight.
Gokal notes the close link between Gold (XAU) and the Chinese Yuan (CNH) has snapped with CNH failing to accompany the recent rally in XAU (see Chart 1). This has led to XAU/CNH breaking out from a multi-year downtrend (see Chart 2).
