Trump announces new tariff – Gold price rises
(Kitco News) – The gold market is seeing some renewed interest and is close to unchanged on the day as President Donald Trump fires another salvo in the U.S. trade war with China.
In a twitter post, Trump said that the government will impose a 10% tariff on the remaining $300 billion in imported goods from China. This is on top of the 25% tariffs on $250 of imported goods.
Gold price were in solidly negative territory but has cut its losses in initial reaction to the tweets. December gold futures last traded at $1,441.20 an ounce, relatively unchanged on the day.
Before Trump’s announcement investors selling gold, reacting with disappointment from a less dovish Federal Reserve following Wednesday’s monetary policy meeting, which saw the first rate cut in a decade. However, some analysts have warned that investors should look past U.S. interest rates and keep an eye on the fragile global economy facing renewed trade war tensions.