The US increased tariffs on China last week to 25% from 10% previously after China backtracked on promises to the US. Trump tweeted earlier that “China should not retaliate – will only get worse!”. Trump also sent an open message to Xi: “China will be hurt very badly if you don’t make a deal”.

But China went ahead with retaliation and placed tariffs on $60 billion of US goods. below is the tweet:

GOLD jumped nearly $15 higher after that and the price broke above the 100 and 200 SMAs which have been providing resistance in the last month. Now, the downtrend which started last February is in danger as safe havens surge on deteriorating risk sentiment. Now we should forget about technicals until the tones calm down.