After divorce, I can hear the voice of the future

Chapter 636 Gold Price Surge is a Trend

"They suppress gold prices but ignore the RMB. They really think highly of me."

Although he said it lightly, Lu Liang's expression was anything but relaxed. The red and green lights reflected on his face, and a "川" character gradually formed between his brows.

In his view, and even according to market consensus, shorting the RMB should be a higher priority than going long on gold.

Gold is, after all, just a form of currency. Although it has a high value, it does not inherently possess deep political significance.

In contrast, the RMB represents the credibility of the University of Tokyo and the wealth of the 14 billion people of the University of Tokyo.

Once the US tariff bill was implemented...
The RMB plummeted in response; how pleasing that sound!

This is the most direct manifestation of the dollar's hegemony.

The underlying logic behind the surge in London gold prices is the US imposing tariffs, the East Asian countries taking retaliatory measures, and the resulting international instability. Therefore, shorting the RMB is a much higher priority than going long on London gold.

To Lu Liang's surprise, Wall Street institutions actually prioritized London gold over RMB.

"Inviting the enemy into a trap? Encircling the enemy point to ambush reinforcements?"

In an instant, Lu Liang thought of two possibilities.

One possibility is that they genuinely intend to make London gold their main battleground, leaving the State Administration of Foreign Exchange with no reason to intervene.

Currency reflects a country's credibility. If the US imposes sanctions, the RMB will plummet, and how will it maintain its standing in the international community?

It can fall, but it must be reasonable.

After all, the tariffs imposed by the US on some goods have indeed affected some domestic foreign trade companies.

If, at that time, Tianxing were imprisoned and made promises to the government and requested assistance, the government could have intervened and provided help under the guise of stabilizing the exchange rate.

Setting the main battlefield in London Gold would solve this problem at its source, leaving Tianxing isolated and helpless.

Another possibility is that they are feigning an attack on London gold while actually planning a major move in the foreign exchange market.

However, this possibility is very low, and the State Administration of Foreign Exchange of Southeast University is not to be trifled with.

This upward trend will end at 6.9.

There is absolutely no possibility of it breaking 7 in the short term.

"Mr. Lu, should we join in or not?"

Sun Yutao looked at Lu Liang and realized that this was a trap.

By sacrificing some of their own interests to suppress the rise in gold prices, they are attempting to lure their main funds into London gold.

If it were him, he would definitely choose not to go with the company. As the company grows larger, stability should be the priority before considering profitability.

Just like in League of Legends, you can only deal damage if you're alive.

If you die trying to get one or two kills and miss the best time to develop, you might end up losing more than you gain.

But he is him, and Lu Liang is Lu Liang.

Lu Liang said, "Follow up quickly, and at the same time reduce foreign exchange investment by 50%."

He narrowed his eyes and sneered, "The surge in gold prices is a trend. Do they really think they can control everything and short the market against the trend?"

Previously, Lu Liang had conducted an assessment based on the available information.

Even with the additional funding from Japan and the use of quantitative trading as a surprise tactic, their chances of profiting and successfully exiting the situation are actually less than 40%.

Because BlackRock and Vanguard were both involved, Tianxing was almost single-handedly fighting against the entire Wall Street.

But now, they are not satisfied with just targeting his funds; they want to devour him completely, which gives Lu Liang a chance to turn the tide.

With a command given, a large amount of funds entered the London gold market, and the price of gold began to rise slowly.

Meanwhile, in the trading rooms of various institutions on Wall Street.

"The surge in trading volume in the London gold market is likely due to Stars increasing its investment."

Several fund managers looked excited. They are among the most powerful institutions in the capital market, and in theory, they shouldn't have a challenger's mentality.

But at this moment, they were like inexperienced newcomers, their fists clenched, their eyes filled with a desire for victory.

In other words, they rely on their large numbers and abundant wealth. If their roles were reversed, they wouldn't even dare to think about challenging them.

Because they were facing Lu Liang, who had never been defeated in three years since his debut, and whose invincible momentum had forged his current illustrious reputation.

Fortunately, this market only cares about results and never about whether it's about the strong bullying the weak or the many taking advantage of the few.

Victory will leave a significant mark on their resumes.

Everyone wanted to step on Lu Liang's head and become a star fund manager on Wall Street.

More than a dozen institutions have taken action to short London gold against the trend.

They also know that going against the trend is not an option, and that a surge in gold prices is likely to be a major trend for the next few years.

But that doesn't stop them from using this to target Lu Liang. They plan to first wipe out his positions, then drive up the price, maximizing their profits.

Tianxing spent $5.23 million, using its usual violent methods, to drive up the price of gold in London to $1720.

However, with the entry of major institutions, the price had not yet been reflected in the candlestick chart before it dropped to $1702 again.

$1700 is also in jeopardy.

"The amount of capital invested remains the same, but it is broken down into more small transactions to create the illusion of a flood of buy orders."

In the Tianxing Trading Room, Lu Liang looked up at the large screen. The short sellers' funds seemed inexhaustible; however much they bought, the other side sold just as much.

"The upper limit for investing in London gold tonight is temporarily set at five billion US dollars. Even if it falls below 1700, it will be fine."

Lu Liang paused and gave another order. It was just past midnight, only the 6th, and it was only noon on the 5th for the Americans.

The real battle is yet to come; in the next two days, they plan to invest no more than $150 billion.

Most of the funds should be reserved for crucial moments, to be the deciding factor in victory or defeat.

Lu Liang pondered for a moment, then suddenly looked at the foreign exchange market.

The offshore yuan fell 530 basis points as of 12:30 a.m., currently trading at 6.8830. It is just 170 basis points away from breaking below 6.9000.

He looked at it for a very long time.
Liang Wenhui was also watching him the whole time.

He was in charge of the quantitative trading part. Unless there were any unexpected events in the market, he basically had nothing to do. In his spare time, he could only observe Lu Liang's trading methods and thinking.

Lu Liang's lips curled into a smile, and he suddenly shouted, "Allocate another five hundred million US dollars to short the RMB. We must drive the exchange rate to 6.89 tonight."

Sun Yutao was momentarily stunned, suddenly finding it difficult to follow Lu Liang's train of thought, but his muscle memory, honed over many years, allowed him to immediately assign Lu Liang's tasks.

Liang Wenhui frowned and suddenly said, "Brother Lu, isn't this too risky?"

A hint of surprise flashed in Lu Liang's eyes: "You know what I'm going to do?"

"I've guessed it, but I'm not entirely sure yet."

"Talk about it."

After a moment's thought, Liang Wenhui said, "With the international situation turbulent in the next few years, the rise in gold prices is a major trend."

“The institutions that are trading against us also know this, but they are certain that the public has not yet realized this, which is why they dare to short gold at this time.”

"Your intention in shorting the RMB is to tell the public that a turbulent period has arrived, and indirectly to tell the public that gold will surge."

Lu Liang looked at him with admiration and asked, "So what do you think I should do next?"

"Tonight, we'll first push the offshore RMB down to 6.89, then tomorrow night we'll press our advantage and push it down to 6.9, and finally we'll start building momentum."

Liang Wenhui looked at Lu Liang with great respect, knowing that Lu Liang was the co-founder of Douyin.

As long as the RMB exchange rate falls below 6.9, he will definitely entrust Douyin (TikTok) to publicize it extensively, making it known to everyone.

When a country's currency depreciates, institutions can still hold US dollars or seek investment channels to hedge their funds.

But for ordinary people, there is only one option: to buy physical gold.

Throughout history, both in China and abroad, countless dynasties have risen and fallen, and countless currencies have been replaced, but gold remains gold.

Whether for aesthetic or industrial value, it is a supermodel, beyond the reach of the six realms and the five elements.

The incident a few years ago, in which Chinese "aunties" rushed to buy gold and beat up Wall Street short sellers, is still fresh in our minds.

Lu Liang's current actions are guiding the market and causing that incident to repeat itself.

When domestic gold prices rise, international gold prices naturally follow suit.

While the Wall Street institutional alliance in New York is powerful, the Tibetan Mastiff team from Tokyo University is by no means undeserving of its reputation.

At that time, London gold prices surged, allowing Lu Liang to decisively defeat the short sellers and freely choose when to exit the market, making him the biggest winner of this market trend.

If this plan succeeds, it will undoubtedly become another classic battle in financial history and a must-test question for every finance major.

The details are too worthy of analysis. For example, the use of the tactic of besieging a point and attacking reinforcements, coupled with the strategy of forming alliances, ultimately led to the victory of the weak over the strong. It is as if the market, the public, and the institutions were all manipulated at will.

"Wenhui, you are truly talented." Lu Liang said earnestly, sparing no praise.

He hasn't missed any of the several price surges in gold in recent years, which is why he came up with this plan.

No one can resist the allure of glittering gold, especially given the Chinese custom of presenting three gold pieces as a betrothal gift.

Just like the gold rush at Shuibei back then, where middle-aged women beat up Wall Street institutions.

Although it sounds nice, in reality you're just taking over someone else's losses. But if you held on until now, you would have broken even or even made a small profit.

Gold is the best investment channel for ordinary people.

(End of this chapter)