Gold Hits a Crucial Crossroad: Will the EU-US Trade Stalemate Ignite a Bull Run or Trigger a Collapse?
The chart below represents the value of trade between the US and its largest trading partners, as illustrated in an article in The Wall Street Journal.
Even with a deal, the US has signaled that the bloc would still be exposed to a baseline tariff of 15% to 20%. As the EU prepares for the worst-case scenario, it has threatened to retaliate against the US if a deal is not reached. A wide range of countries are finding themselves in a similar situation, which is causing a reduction in demand for the US Dollar. A weaker USD also makes Gold less expensive for foreign investors seeking safety in alternative assets.
Post Comment