Gold prices rose due to the hot tension of global trade war. The US President Donald Trump continues to spread the threat and warns the World Trade Organization (WTO) regarding the global trade war dispute after the WTO issued a report stated that US’s decisions triggered a trade war. President Trump considers that the WTO has treated the US badly.
Previously, President Trump reportedly plans to make regulations to freely increase the import duties at any time and impose import duties to certain countries. Many investors switch back to the safe haven assets because of the economic uncertainties caused by the trade wars. Market participants will start to collect gold because of the worsening trade war.
Last week US economic data that was released mostly negative. The negative data can be seen from US’s Markit Manufacturing PMI for the month of June was decreased by 1.77%, US’s ISM Manufacturing Prices for the month of June was decreased by 3.40%, US’s Construction Spending MoM for the month of May was decreased by 0.50%, US’s ISM New York Index for the month of June was decreased by 2.48%, US’s Continuing Jobless Claims for the month of June was increased by 32,000, US’s Initial Jobless Claims for the month of June was increased by 3,000 and US’s ISM Non-Manufacturing Prices for the month of June was decreased by 5.60%.
US-Indonesia Trade War Kicks Off
The higher number of Indonesian exports to the US compared to US exports to Indonesia caused US President Donald Trump to issue a warning to Indonesia. President Trump threatened to revoke some special treatment, one of which is a special treatment tariff, which is given by the US to Indonesia. Will President Trump’s warning threaten the Indonesian economy?
The US Federal Reserve convinced of their plans to raise the interest rates. However, concerns arose about the trade war policies inflamed by the US President Donald Trump against China that could bring a negative impact on the US economy. Will the plan to raise their interest rates continue to run amid geopolitical uncertainty?