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In my opinion yes, the affect on the Chinese economy seems as though it could be rather large. This will have a knock on affect to the rest of the world economy and especially the EU as there is a lot of trade between the 2. This could mean a weakened Euro. However, due to the Euro becoming more of a safe haven currency in recent times, it may not weaken as much as normal.

Mohammed, I wouldn't necessarily agree that it is due for a sell off. I think the current risks in the market will keep gold prices elevated. There seems to be risks from all angles at the moment, even if they aren't at the forefront of media reports. I would point to the coronavirus as the main worry right now, and even if a vaccination is created or the spread is contained and reduced, I would then look at the slowdown in the Chinese economy as another risk to markets. We then of course have the trade war and phase 2 negotiations, Iran and the US potential conflict and the massive amounts of debt in the global economy. Now, Im not saying there will be a crazy selloff and we will plunge into a recession. However, I think the current risks are enough to keep gold elevated, for now.