Tag Archive: tariffs

How Quickly Things Can Change

After seeing some moderate selling in early trade today, the gold market has been clawing its way back to nearly the unchanged level for the session. At the heart of gold’s reversal could be commentary from President Donald Trump. The President recently suggested that the U.S. was not going to follow up on previous discussions phase out tariffs along with China as part of the Phase 1 trade agreement gets ready for signatures. Not surprisingly, the gold market’s rise today happens to coincide with stocks... Continue Reading

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A Prime Example- Volatility Spike

Over the weekend: President Trump alluded to a breakdown in ongoing U.S./China trade negotiations. The U.S. is now set to impose further tariffs on $200 billion of Chinese goods, taking the current rate of 10 percent up to 25 percent. Talks were scheduled to continue this week in Washington, although it is now unclear if scheduled meetings will take place. Markets are on edge over the news, as stocks had seemingly priced in a deal being done in the coming weeks. Volatility Spike: Today, the... Continue Reading

Big Week

The week ahead could potentially see some market volatility as there are numerous key issues that could fuel price action. The ongoing trade talks with China, the Fed meeting and of course the midterm elections could all impact market sentiment. The highly anticipated midterm elections are quickly approaching, and recent reports suggest that the democrats have a significant lead. The election is of significant importance, as a flipping of the House from republicans to democrats could have a huge effect on the Trump administration’s agenda... Continue Reading

Two Major Factors

The gold market remains relatively quiet in recent action as the metal tries to hold support around the $1200 level. The bulls have not had much to cheer about in recent weeks, as higher stocks and a stronger dollar have taken a toll on sentiment. When it comes to financial markets, however, things can and do change in a hurry. That said, there are two potential events on the horizon that have the potential to drastically change the outlook for not only gold but other... Continue Reading

Back to Business

With the Labor Day Holiday weekend now in the rear-view mirror, investors will likely look to get back down to business as the month of September gets under way. With increasing trade volumes may also come an increase in market volatility. Investors appear to have gotten quite complacent in recent months as stocks have treaded water not far from previous all-time highs. This complacency, however, could lead to a significant market decline if a bearish catalyst gets the ball rolling. A primary area of concern... Continue Reading

One Step Closer to an All out Trade War

Stocks are taking it on the chin in early action Tuesday, with the Dow Jones at one point in early action trading lower by over 400 points. The ongoing escalation in trade relations between the U.S. and China has set the tone for the day, and investors appear to be increasingly aware of the risks that a full-blown trade war could pose. In the latest salvo, U.S. President Donald Trump has said he would consider additional tariffs on another $200 billion worth of Chinese goods... Continue Reading

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The Inflationary Effects of a Trade War

Recent dollar strength, stronger stocks and overall robust appetite for risk have all weighed on gold in recent weeks. Despite these headwinds, however, the yellow metal has not succumbed to any significant selling. All of the issues potentially weighing on gold prices currently are likely temporary. Stocks will probably not continue to go up indefinitely, the dollar is likely to roll over again and there will come a point when risk aversion is a major market theme. There is another major issue, however, that is... Continue Reading

The Trade War is on

Over the weekend, China announced tariffs up to 25% on a variety of U.S. imports, including pork, nuts, fruit and wine. The action taken by Beijing is in direct response to recent tariffs announced by the Trump administration. The recent actions taken represent a heightened state of tensions surrounding trade, and may continue to keep investors on edge. The war on trade could potentially escalate, and regardless of what side of the political aisle you may lean towards, it could have a significant effect on... Continue Reading

Did the U.S. Just Get One Step Closer to an All-Out Trade War?

Recently, we discussed some of the potential implications of a global trade war following the Trump administration’s decision to impose tariffs on steel and aluminum. Regardless of what side of the aisle you may be on, investors are still trying to decide just how significant an impact such tariffs may have on companies and financial markets. Following the decision, economic advisor Gary Cohn submitted his resignation yesterday. Cohn was considered to be a strong supporter of free trade, and apparently did not feel he could... Continue Reading