- The price of gold goes back to 3,200 $ early on Monday, correcting from historical maximums.
- The US dollar keeps the rebound in the middle of an optimistic feeling and the latest news about tariffs.
- The price of gold looks towards the Fed statements and China’s commercial data to obtain short -term commercial impulse.
The price of gold is back in red numbers early Monday, breaking a three -day record recovery to historical maximums of $ 3,245 reached on Friday.
The price of gold corrects a feeling of improved risk
The flows to shelter assets seem to have decreased in the Asian trade on Monday, since the operators celebrate the Wall Street turn on Friday along with some positive updates on the war of tariffs between the US and China, reliefing for now the upward pressure on the price of gold.
On Friday, China responded to the increase in US tariffs to 145% raising tariffs on US goods to 125%. However, Beijing said he would ignore future US responses.
During the weekend, US President Donald Trump considered to impose tariffs of 20% on Chinese semiconductors and electronics supply chain against the 145% tariffs of 145% previously announced.
These tariff updates seem to be positively perceived by markets, since they provide some comfort and allow a modest recovery of the US dollar compared to its main monetary rivals from minimum of 35 months.
The increase in the US dollar and the appetite for the risk maintain the downward correction in the price of gold while the operators expect the report of the Balance of China and the speeches of several responsible for the US Federal Reserve (Fed) to obtain more commercial impulse.
Markets could use the not -so -high tariff excuse on electronics and Chinese chips to take benefits after the recent increase in gold.
FAQS tariffs
Although tariffs and taxes generate government income to finance public goods and services, they have several distinctions. Tariffs are paid in advance in the entrance port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while tariffs are paid by importers.
There are two schools of thought among economists regarding the use of tariffs. While some argue that tariffs are necessary to protect national industries and address commercial imbalances, others see them as a harmful tool that could potentially increase long -term prices and bring to a harmful commercial war by promoting reciprocal tariffs.
During the election campaign for the presidential elections of November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy. In 2024, Mexico, China and Canada represented 42% of the total US imports in this period, Mexico stood out as the main exporter with 466.6 billion dollars, according to the US Census Office, therefore, Trump wants to focus on these three nations by imposing tariffs. It also plans to use the income generated through tariffs to reduce personal income taxes.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
