{"id":154479,"date":"2019-08-30T11:11:59","date_gmt":"2019-08-30T15:11:59","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=154479"},"modified":"2019-08-30T09:54:20","modified_gmt":"2019-08-30T13:54:20","slug":"silver-explodes-on-china-trade-hopes","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/08\/silver-explodes-on-china-trade-hopes\/","title":{"rendered":"Silver Explodes On China Trade Hopes"},"content":{"rendered":"
August 30, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

Gold<\/strong><\/h2>\n

Following an initial break higher on the week, gold prices reversed lower to the end the week in the red.<\/p>\n

Gold this week has largely been moving along with\u00a0the changes in US-China relations.<\/strong><\/p>\n

We kicked off the week with\u00a0China<\/strong>\u00a0announcing a fresh set of 10% tariffs on a further $75 billion of US goods.<\/strong>\u00a0This was in\u00a0retaliation for Trump\u2019s fresh tariffs due to take effect on September 1st<\/sup><\/strong>. Trump then issued a swift\u00a0counter-threat, promising to raise tariffs again.<\/strong>\u00a0Taking to Twitter, the president wrote:<\/p>\n

\"\"<\/a><\/p>\n

In light of this severe escalation, gold gapped higher at the open of the week, with equities having come off sharply amidst a wave of risk aversion. However,\u00a0on Monday, Trump seemed to completely shift his approach.<\/strong>\u00a0Making his final comments at the end of the G7 meeting in Biarritz, Trump said that there had been phone calls between the two nations and praised\u00a0Premier Xi as a \u201cgreat leader\u201d<\/a>\u00a0(having labelled him \u201can enemy\u201d only days earlier,) and said he was\u00a0confident the two countries would deliver a \u201cgreat deal\u201d very soon.<\/strong><\/p>\n

Gold prices came off in response to this more moderate tone as risk sentiment recovered.\u00a0<\/strong>This led to\u00a0equities rising higher<\/a>\u00a0and sapping safe-haven inflows. Further into the week, this dynamic intensified. This was due to comments made by Gao Feng, a spokesman for the Chinese Ministry of Commerce. The spokesman\u00a0appealed for calm and said that China would refrain from imposing fresh tariffs in retaliation to the US, instead of\u00a0saying that the country wishes to see an end to<\/strong>\u00a0the trade war.<\/p>

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Negotiators from the two countries are due to meet for a further round of face to face trade talks in just two weeks.<\/strong> The market is now hopeful that this meeting will deliver more progress than last time around. If this should be the case, gold will likely come of further as risk sentiment strengthens. However, the situation remains fragile and there is plenty of upside risk for gold should talks breakdown or should there be any further tariff threats made.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex Gold Following an initial break higher on the week, gold prices reversed lower to the end the week in the red. Gold this week has largely been moving along with\u00a0the changes in US-China relations. We kicked off the week with\u00a0China\u00a0announcing a fresh set of 10% tariffs on a further $75 billion of US […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-154479","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/154479","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=154479"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/154479\/revisions"}],"predecessor-version":[{"id":154490,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/154479\/revisions\/154490"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=154479"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=154479"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=154479"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}