America China tariff deal
The ongoing tariff war between the US and China may soon end. The hope of agreement between the two countries on tariffs has increased. In fact, on Friday, President Donald Trump told reporters at the White House that America was “having good talks with China.” “This is really great,” he did not give any detailed details on the matter but assured that both countries are close to the tariff deal. He had earlier also said that Chinese representatives from Beijing have approached the US “many times”. If the tariff deal between the US-China is soon, then it will be good news for the stock market. At the same time, gold can be seen in gold. There may be a big decline in gold. Let’s know how cheap gold can be.
What will be the effect of trade deal?
If the trade deal (trade agreement) is made from other countries including the US and China, then global tension will decrease. This will return enthusiasm in the stock market and reduce the demand for safe haven assets (such as gold). As a result, gold prices may fall.
How much will gold be cheaper than reconciliation in America-China?
The experts of the bullion market believe that if the trade war in the US and China is over, then there may be profit booking in gold. Gold can come up to Rs 83,700. Expressives to persuade that positive trade talks between the US-China and other countries will put a brake on the boom of gold. However, gold has strong support at the level of 89700 ($ 3080), 86500 ($ 2975), 83700 ($ 2865). That is, gold can come up to Rs 83700 even in a big fall.
Gold becomes even more attractive investment medium
Anuj Gupta, the head of commodity and currency in HDFC Securities, told India TV that gold has become more attractive asset class among investors due to skyrocketing inflation, economic risk and geopolitical risk. The trade war has increased fear among investors, who are choosing gold as a safe investment. The possibility of increasing inflation in the US and weakness in dollar is helping the gold uptrend. In addition, we guess that the strong demand of central banks and the flow from the ETF supported by gold will remain throughout the year. The market is also speculating that increasing instability may motivate the Federal Reserve to cut rates to prevent recession. Lower rates to gold generally benefit.
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