After the U.S President Trump’s last week tariff hike, markets have been watching China side. In particular, gold was being closely watched by the traders. China announced today to increase tariffs of $ 60 billion for U.S goods. This move from China was considered to be a clue that trade wars would be more heated.
Spot gold spiked today one month high on $1299 as U.S-China trade tension is getting more dramatic. The price remains sensitive to the US-China trade war topic. The resistance of $1300 is a strong psychological level. Precious metal remains below this barrier for now. If the price can pass $1300, might be test $1310. However, if it remains below that barrier, it can be retracted around 1292 and 1286. Trump’s next step will be decisive.