Gold Continues to Trade Bullish Despite Trump Delaying Some Tariffs
Arslan Butt • 1 min read
Gold prices maintain their bullish momentum into Wednesday even after Trump decided to delay some tariffs on Chinese imports. At the time of writing, GOLD is trading at a little above $1,500.
On Tuesday, gold prices fell nearly 2% lower immediately following Trump’s announcement to delay tariffs on some Chinese goods from September 1 to December 15. However, gold’s safe haven appeal remains strong as markets fail to see this as a development significant enough to lead to a trade deal anytime soon.
In addition, the situation in Hong Kong continues to remain tense, lending gold prices some more support. After halting operations from the airport, protesters and the riot police were engaged in violent clashes at the terminal late on Tuesday night.
Gold prices are expected to remain high for some time to come in anticipation that the Fed and other leading central banks around the world could turn dovish following recent weakening in the global economy. Markets are widely expecting the Fed to cut interest rates by another 0.25% in September to counter the effects of the trade war on the US economy.