Trump's Reciprocal Tariff Action Triggers Global Trade Turmoil, Safe Haven Assets Become Targets
Donald Trump is back in action in setting import tariffs on his trading partners. The latest news says that Trump has ordered Howard Lutnick and Jamieson Greer, his choices for US trade secretary and trade representative, to lead a team to calculate new import taxes on America's trading partners.
This shows that Trump wants to take retaliatory action for what his trading partners have set for America, Trump wants everything to run fairly, how much America has to pay out is also what other countries have to pay if they want to trade with America.
The global trade turmoil created by Trump has now entered a worrying stage so that many market players and investors have finally returned to looking for stable assets as their hedge.
Gold, which had previously experienced a decline along with Powell's speech which said that he was still monitoring the US economic situation in inflation data, has soared again following its main fundamentals in the trade war. After correcting to the $2864 area on Wednesday after the increase in inflation data, the metal rose again and tested its all-time high of $2942.
With the uncertainty in global trade and geopolitics heating up in the Middle East, it is not impossible that in the next few months we will see gold touch the $3000 troy ounce level.
Source: (mrv@Newsmaker)
