Gold Jumps on further trade war fears

Gold prices moved higher in early trading on Monday as US and China introduced a new round of tariffs on each other’s goods, which left investors seeking out the precious metal as a safe haven

 

The United States introduced some new 15% tariffs on a variety of Chinese goods on Sunday - including footwear, smart watches and flat-panel televisions and China immediately retaliated by imposing new duties on some US goods.

 

U.S. President Donald Trump left the door open for a compromise saying the world’s two superpowers would still meet for talks later this month which if successful may lead to the cancelation of a bigger round of tariffs due to take effect in December and would cover virtually all Chinese goods entering the US.

 

There have been a lot of attempts in recent months to deescalate the trade war by both sides to no avail and until some major concrete steps are taken to find a solution, safe haven assets such as gold are going to remain well supported.

 

“The reality of the trade war with the new tariffs being implemented over the weekend has kept a risk-off tone in markets this morning,” said ANZ analyst Daniel Hynes.

 “There is still a very high level of skepticism. Traders want to see talks restart with both parties suggesting some positive outcomes before any optimism around the progress sets in,” he added.


Analyst

The world of trading has no boundaries
Important notice
By clicking "Continue" you will be redirected to the website operated by FIBO Group Holdings Limited, a company registered in Cyprus and regulated by CySEC. Please familiarize yourself with the Terms of Business through the link. Click "Cancel" to remain on this page.