Speculation about a Modi-Xi meeting has grown following a series of high-level contacts between India and China in recent weeks. Both National Security Adviser Ajit Doval and external affairs minister S Jaishankar have met top Chinese diplomat Wang Yi, who is currently the foreign minister, on the margins of multilateral gatherings in recent weeks.

The joint statement issued after the latest meeting between Indian and Chinese military commanders on the standoff on the Line of Actual Control (LAC) has also fuelled speculation about a Modi-Xi meeting in Johannesburg. The statement, issued after the talks held during August 13-14, had described the discussions as positive and constructive.

Eoin Treacy's view

There is rampant speculation the BRICS countries are preparing to announce the creation of a gold-backed currency unit. I’m still at a loss as to how that will work. The five members are hardly bosom buddies and any monetary co-operation is more likely to involve greater use of the Renminbi in trade with  China. I do expect a memorandum of understanding to be signed amid plenty of photo ops. Six months from now there will be little evidence of progress.
The fact gold has not reacted to the speculation about a gold-backed currency should provide speculators with all the proof they need that this is unlikely to be a game changer. The strength of the US dollar and the trajectory of real rates remain by far the most important catalysts for renewed bullish interests.
The risks are a further retracement of the gains put in between October and May. The VanEck Gold Miners ETF (GDX) broke lower this week. While short-term oversold, a clear upward dynamic will be required to check the slide.