- In one week (17/09 – 21/09) the price of ICDX’s Gold moved up 0.40%.
- The highest volatility for ICDX’s Gold reached 0.70%.
Gold prices rose due to investors preparing to face the trade war between the United States and China. Investors bought gold as a safe haven and focused on the impact that would occur from the implementation of US import tariffs on China’s goods. US President Donald Trump will impose a 10.00% import tariff on China’s imported goods worth of USD 200 billion and will be implemented in late September 2018. Conversely, the China government said that it will impose tariffs on US imported goods worth of USD 60 billion. The trade war that took place added to the conflict for the two countries, which have the largest economy in the world. Investors considered that the ongoing tariff war has a negative impact and gives greater losses to the US if compared to China.
Last week US economic data released was mostly negative. The US’s NY Empire State Manufacturing Index for the month of September was decreased by 25.78%, US’s Building Permits MoM for the month of August was decreased by 6.60%, US’s CB Leading Index MoM for the month of August was decreased by 0.20%, US’s Markit Composite PMI Flash for the month of September was decreased by 2.38% and US’s Markit Services PMI Flash for the month of September was decreased by 3.47%.
Price Performance Indicators
The US Federal Reserve is scheduled to have meeting and statement on Thursday morning, with CME Fed Fund Futures Rate expected more than 90% that the Fed will raise its rate to 2.0-2.25%. Within the high expectation, please note for any anticipation move that may put USD lower and support the gold. But on the other hand, any possibilities that may support the USD and put pressure the gold prices still on hand.
No Trade Talks U.S.-China May Dim Gold Market
The Chinese canceled the talks with the U.S. and kept the trade war issue bleak. As the issue still effects on the market, any updates that can heightened the trade war issue, will put the gold prices on pressure, on the other hand any positive news on the issue will put pressure on USD and support the gold.
WEEKLY ECONOMIC DATA & EVENTS CALENDAR
||U.S. – ISM Manufacturing PMI (Aug)
||U.S. – Chicago Fed National Activity Index (Aug)
||U.S. – New Homes Sales MoM (Aug)
||U.S. – FOMC Meeting & Statement
||U.S. – Michigan Inflation Expectations (Sep)
Source: ICDX Research