- Precious metals shoot at risk aversion as commercial uncertainty grows.
- Trump’s threats to increase general tariffs have promoted the demand for safe assets.
- The XAG/USD has exceeded the maximum in the long term of $ 37.30, with bulls focused on $ 37.65.
La Plata (XAG/USD) extends its profits for the second consecutive day on Friday, supported by a slight feeling of risk aversion, after Trump announced a new batch of tariffs and increase the base tariffs to all other countries to 15% or 20% from the initial 10%.
The president of the United States subtracted importance to inflation and shook the markets by applying 35% tariff Outlook. Markets have reacted with risk aversion, getting rid of shares and increasing the demand for safe assets such as precious metals.
Technical analysis: above $ 37.30, the following objective is 37.65 $
La Plata bounced at the bottom of the upward channel since the minimum of June 24 on Thursday and is now testing the upper part of the negotiation range of the last six weeks, at 37.30 $, which is also a maximum of 12 years.
The 4 -hour relative force index is close, but not yet at overcompra levels, and the fundamental context remains favorable. With this in mind, a new test of the resistance of the channel, now at $ 37.65, seems like a plausible objective before a consolidation or a downward correction occurs.
Downwards, the immediate support is located at the minimum intradication of 36.95 and the maximums of July 8, before the lower part of the channel, now at 36.45 $, and the minimum of July 9 in 36.15 $.
Tariffs – Frequently Questions
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.
