Gold Prices Jump After President Trump Announces New 10% Tariff On China
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(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.
...We look forward to continuing our positive dialogue with China on a comprehensive Trade Deal, and feel that the future between our two countries will be a very bright one!— Donald J. Trump (@realDonaldTrump) August 1, 2019
...during the talks the U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country. This does not include the 250 Billion Dollars already Tariffed at 25%...— Donald J. Trump (@realDonaldTrump) August 1, 2019
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.