By David Song From Dailyfx.com
GOLD PRICES CLIMB TO FRESH 2019 HIGH AS US AND CHINA BOOST TARIFFS
Gold prices may continue to exhibit a bullish behavior as China boosts tariffs on the US, with President Donald Trump responding by announcing that “starting on October 1st, the 250 billion dollars of goods and products from China, currently being taxed at 25%, will be taxed at 30%.”
In addition, the “remaining 300 billion Dollars of goods and products from China, that was being taxed from September 1st at 10%, will now be taxed at 15%,” and the growing threat of trade war may become a growing concern for the Federal Reserve as “trade policy uncertainty seems to be playing a role in the global slowdown.”
In turn, the Federal Open Market Committee (FOMC) may come under increased pressure to implement a rate easing cycle, but it remains to be seen if the central bank will reverse the four rate hikes from 2018 as Chairman Jerome Powell argues that monetary policy “cannot provide a settled rulebook for international trade.” Read More...