Forex Marketz Daily Forex News – Fully Markets Update
Gold futures prices have risen considerably overnight and into today’s morning Asian trade session to a two week high. Traders ran to safe haven assets after President Donald Trump made good on his long promised anti-China tariffs. This has sparked fears of a global trade war.
As of 1 am GMT, spot gold (XAU/USD) future rose 0.7 percent to $1,337.16 per ounce. Price action is now at its highest level since March 7 at $1,338.99. This puts the bullion on track for their best weekly performance since February 16.
U.S. gold futures, for April delivery, were up 0.7 percent to $1,337.10 per ounce.
The dollar index was lower by 0.3 percent at 89.632. The yen is now at a 16 month high against the dollar. Mounting tensions over a rising global trade war has now triggered investor risk aversion.
Gold Spikes on Trade War Tensions between China and the United States
A presidential memorandum signed yesterday will target nearly $60 billion in Chinese goods with tariffs. This is what his administration says is for misappropriation of U.S. intellectual property. These tariffs will go into effect after a “30 day consultation period” once a list is published.
China unveiled plans to strike back. They said that saying that they will impose tariffs on $3 billion of U.S. imports. This is in retaliation for U.S. tariffs on Chinese steel and aluminum products. The world’s two largest economies are the brink of a trade war.
China blamed U.S. export restrictions for its record trade surplus with the United States. Still China is expressing hope that a solution can be found to settle trade issues.
European Union leaders were cautious to the news that Trump will not to apply tariffs to European steel and aluminum. They are still waiting for the Trump White House to confirm that decision.
In other news, the Bank of England kept rates steady on Thursday. However, two of the central bank’s policymakers voted for an immediate rate increase.
