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China was growing its presence in the global economy and what it announced in terms of monetary policy was becoming important to financial markets, Hayes Asset Management portfolio manager Craig Robins said.
Mr Robins, from Queenstown, manages the Hayes Gold Fund which invests in a core holding of gold bullion and has an allocation to silver and globally listed gold and silver miners.
Speaking to the Otago Daily Times, Mr Robins said the Chinese devaluation of its yuan last week would cause barriers for all currencies, including the United States dollar.
The decision to devalue the yuan three times was partly a reaction to a weaker domestic economy resulting from a weaker global economy.
Like most countries, when their economy was sinking, the Chinese had opted for a weaker currency to improve their competitiveness.
''More importantly, China is seeking to internationalise its economy and monetary policy. This involves increasing transparency, reducing controls and moving towards a free float of the yuan.''
The devaluation process should be viewed as a step in the process to a free float and increased financial market transparency, he said.
China's actions would lead to further global competitive currency devaluations that were a result of eight years of quantitative easing and zero interest rate policies.
The devaluations would also challenge the United States Federal Reserve's monetary policy and the proposed rate rise.
''Chinese monetary policy will become an increasingly important influence on global financial markets that have traditionally relied on the direction from the US Fed' only.''
The impact on the physical gold market was tight, just as the Indian buying season began, Mr Robins said.
China's central bank was now disclosing its reserves on a monthly basis to again improve transparency and internationalise its economy.
The People's Bank of China bought 24 tonnes of physical gold in July as gold prices dropped. Chinese citizens also bought ''enormous'' amounts of physical gold, up 33% year to date compared to 2014.
In the derivatives market, where gold prices were determined for now, although China was about to exert its influence, speculators and hedge funds were now long in holdings of US dollars and short in holdings of other currencies and gold, he said.
Speculators and hedge funds believed the US dollar was going to become more valuable than other currencies and gold.
Mr Robins said China was being encouraged by the International Monetary Fund to reduce controls and move towards a free market economy.
The monetary policy announcements made by China in recent days were significant and were similar to recent equally important announcements regarding new trade, investment and banking platforms.
China was building the economic and monetary platforms to deliver the next phase of global growth with it being centre stage, along with other superpowers, he said.
''This is a very exciting time for the world. China is moving into the next phase of driving global growth and that's also very exciting.''
Looking at his own fund, Mr Robins said despite gold priced in US dollars being weak and sentiment towards the sector remaining bearish, of more relevance was the price of gold in an investor's home currency.
Year to date gold priced in New Zealand dollars was up 12.3%. A New Zealand investor was up 12.3% and a New Zealand gold producers had experienced higher margins and higher profits.
A gold mining operation in Waikaia, Southland, was doing ''exceptionally well'', he said.