Last week’s devaluation of the Yuan created a surge in Gold price over the following two days as investors turned to the shiny metal in search of a safe haven. Since then the past 4 trading sessions has seen price remain within a fairly tight range between with most action between $1126.00 and $1110. China is the world’s number three for Gold demand but the devaluation of its currency may have a negative effect in the longer run as Gold quoted in US Dollars becomes more expensive. Last Friday China’s biggest Gold Bullion ETF, Huaan Yifu Gold, reported a third consecutive outflow of funds. The general strength of the US Dollar against most currencies, especially of Gold producing countries adds to the downward pressure for gold, as these countries can sell Gold at lower US Dollar prices and still receive a decent price as their currency weakens. A higher interest rate scenario in the US also means that Gold may not be so attractive, as Bonds will start carrying higher coupons. This evening at 7pm there will be a release of the FOMC minutes, this could shed more light on the timing of the next interest rate rise in the US, Gold could fall in price if there are clues to the timing of the rise being in September. The close range that the market has been trading in over the past four days may be broken as volatility could increase after the minutes are released as new information hits the markets.