China has had enough! Blasting looming U.S. tariffs of 10% on a further $300 billion of Chinese imports, exclaiming it too be a violation of the accords reached between President Trump and President Xi Jinping. China has reached out to the World Trade Organization (WTO) to help determine the legality of the United States trade policies, stating that the U.S. has not only violated China’s rights, but undermined the WTO’s authority.
On Tuesday morning, President Trump announced that the 10% tax on a broad set of Chinese produced goods, will be delayed. Pushing the implementations of the tariffs back form September 1st too December 15th. As a result, stock markets were sent soaring. Merely a week prior, the markets were headed in the opposite direction after the Trump administration officially labelled China as a currency manipulator. Has this delay been a compromise made by Trump, or a strategic move to swing the markets movement around?
The S&P500 saw huge upward spike of over 6000 basis points, following the tariff delay announcement on Tuesday 13th August. Continuing its downward trend for the remainder of the week. With a consolidation zone emerging on a longer time-frame (weekly), we can expect to see continues movement between the 2790 and 2945 levels.
Hours prior to Trumps announcement of tariff delays on Tuesday 13th August, gold was trading at a yearly high of $1533 per ounce, with a nearly immediate downturn following the announcement. Plummeting to $1485 per ounce.
Looking at the hourly time frame, we can see a fake out pattern emerging following the tariff delay announcement.
Whereas, a daily time frame shows a clear rejection at the support. As gold prices plummeted, testing the support, with a rapid turnaround continuing golds recent upward trend.
Gold currently on a slight down trend, trading around the $1515 mark, as writing.