Trump delayed tariffs due to pressure from US businesses while US-China trade talks continue to show no progress. Gold could resume its uptrend.
Trump surprised the market after announcing that he would delay tariffs on Chinese imports. He said ”We're doing this for the Christmas season. Just in case some of the tariffs would have an impact on US customers."
The decision to delay tariffs was due to pressure from US business who are feeling the pain from the long-drawn US-China trade war. However, trade talks did not have any progress which meant that Trump could resume its tariffs in time to come.
Furthermore, we saw that political conflict in Hong Kong has escalated with China moving their troops to Hong Kong border. Even though Trump has said that he will not intervene in the conflict between China and Hong Kong, but with Hong Kong status as a financial hub, the global economy will be affected one way or the other.
With these in mind, risk aversion could continue to rise which would boost safe-haven currencies until we see a clear sign of recovery.
Fullerton Markets Research Team
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