New Tariffs Implemented, Gold Climbing Higher
Arslan Butt • 1 min read
At the beginning of a fresh trading week and month, gold is trading bullish over the new tariffs imposed by US and China on each other’s imports. At the time of writing, GOLD is trading at a little above $1,525.
Starting Sunday, US’s latest tariffs on Chinese goods like footwear, smartwatches, flat-panel TVs and more kicked in, even as China began imposing a 5% levy on US crude. The fresh escalation of the trade war has soured the market sentiment further, sending the safe haven gold higher.
The latest tariffs caused a weakness in the US dollar, which shares a negative correlation with the precious dollar. The US dollar index fell 0.1% lower, making gold more affordable for investors against the dollar. In addition, Wall Street futures have also slipped lower early on Monday as uncertainty remains high in global financial markets.
Gold prices also remain supported over increased concerns of a no-deal Brexit and escalating protests in Hong Kong. As the trade war intensifies, China is planning to step in with additional stimulus measures to support the economy. Easing of monetary policies increases the demand for the yellow metal.