Forex Marketz Daily Forex News – Fully Markets Update
Gold futures contracts inched higher during the Asian trade session Monday. The safe haven bullion is being boosted thanks to increased trade tensions between the United States and China which could lead to further easing of monetary policy from the U.S. central bank in order to insulate their economy.
The widely traded spot gold futures contract, as of 1:05 am GMT, was trading higher. This contract gained 0.2 percent to trade at $1,443.56 per ounce.
U.S. gold futures, for front end delivery, however, was trading lower. This contract lost a fraction to trade at $1,455.40 an ounce.
Traders, thanks to new trade tensions, are expecting more monetary policy easing which sent the dollar lower. The dollar index was last trading near a one week low during the Asian hours.
These new tariffs, could force the Federal Reserve cut rates again to insulate and protect the U.S. economy from trade policy risks as slowdown could occur.
China will fight back against U.S. Tariffs sinking the Yuan and Boosting Gold Prices
China says that they will fight back against U.S. President Donald Trump. The U.S. President, last week, abruptly announced new sanctions on remaining Chinese imports that ended a month long trade truce.
President Donald Trump broke the trade war truce when he announced further tariffs of ten percent on $300 billion of goods out of China. These tariffs will go into effect on September 1. Trump’s announcement occurred right after United States Trade Representative Robert Lighthizer and his team returned from Shanghai and trade talks.
Trump is disappointed that China has not lived up to their promise to buy more agricultural products from the United States.
