Analyst: Yuan as a reserve currency will definitely affect gold prices. But in what way? - Video

Jim Rickards, best-selling author of "Currency Wars" and "The Death of Money", is being interviewed by Kitco News on how China's request to make yuan an IMF reserve currency will affect the prices of gold.

While Rickards predicts that the U.S. dollar will eventually correct, he explains that there is a current peg between the U.S. dollar and the Chinese yuan. "The currency wars are being fought around the world, but there is a sort of a lull in the fighting between the U.S. and China right now."

The strengthened dollar is damaging the US economy, but this is part of the currency wars. And this is hardly what the Fed wants.