1/2. If the Yuan-Gold peg theory is correct, China is killing the paper Gold market by ice, not fire i.e. by pushing to extremis the paper Gold price suppression. Keeping Gold cheap in Yuan,it ensures physical demand is unaffected/increases in the East. 2/2. This increases pressure on the Banking Cartel to deliver the same or greater amount of physical at ever lower $ prices, when in fact they hoped that decimation of the Yuan and EM "colony" currencies against $ will lead to demand destruction of physical.