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On Tuesday, 11 August, China announced a surprise devaluation, prompting a four-year low against the US dollar. This is the largest one day devaluation we have seen from China since 1994 and is thought to be a strategic move to boost exports to propel growth. Speculators believe this may spark a series of global currency wars. Just last week I discussed the downward trend of gold prices (here), but in light of China’s devaluation and the uncertainty of the impact, gold’s title as a safe haven investment may be more relevant than previously thought. Impact on commodities China is currently… continue reading