Trump Softens, Gold Weakens
Who knows what's on US President Donald Trump's mind right now, after a series of aggressive tariff moves against his trading partners, especially China, he recently made a softening statement about his tariff policy.
After throwing tariffs at China, Trump is now considering lowering tariffs on Beijing's imports while waiting for talks with the country led by President Xi Jinping. A White House official said, "China's tariffs could go down from the current level of 145% to between 50% and 65%," Trump actually confirmed the same thing. He had said that his party would reach a fair deal with China, when speaking to reporters on Wednesday. His statement followed his optimistic comments on Tuesday that a deal to lower tariffs was possible.
The subsequent effect after Trump's move immediately had an impact on the movement of gold prices which weakened. As we know, in the last few months gold has experienced a strong increase in price due to the uncertainty of this trade war. So what happens if this trade war subsides? What happens is that there will be a possibility of a decrease in the inflation rate in America which also supports the increase in the dollar and the interest rate cuts, where we all know that low interest rates tend to burden gold. Then another thing that supports the weakening of this yellow metal is from the technical side. Several indicators on TF1D and TF1W have confirmed that there will be a decline.
Source : (mrv@Newsmaker)
