Gold prices rose on Tuesday on strong haven demand while some assets rebounded somewhat after massive losses in the last three sessions, as the dollar lost ground. 

The US imposed gigantic 104% tariffs on Chinese products starting Wednesday as a punishment to China’s punitive tariffs on US products.

China’s government vowed to fight till the end and called out the “blackmailing nature” of the US.

Otherwise, US stock indices rebounded temporarily before bouncing back down and extending their heavy losses today as prospects of trade deals diminished.

Otherwise, the dollar index fell 0.3% as of 18:38 GMT to 102.9, with a session-high at 103.4, and a low at 102.7.

On trading, gold spot prices rose 1% as of 18:43 GMT to $3002 an ounce.

US stock indices rose on Tuesday as they try to recoup recent heavy losses due to the erupting global trade war.

The positive sentiment in the markets came after US President Donald Trump’s statements that nearly 70 countries contacted the US administration to negotiate tariffs. 

Trump said the negotiations might lead to some good deals if these countries provided suitable offers to America.

On China, Trump said Beijing wants to reach a deal with the US, but the Chinese government hasn’t contacted him yet.

On trading, Dow Jones rallied 2.6% as of 15:43 GMT, or 992 points to 38,956 points, while S&P 500 surged 2.6%, or 134 points to 5196 points, as NASDAQ added 2.9%, or 458 points to 16,060 points. 

Bitcoin gained ground on Tuesday and expanded the gains for the second straight session, trading above $80,000 once more on a wave of recovery from five-month lows.

Japan’s MetaPlanet raised its bitcoin holdings to another record high, bolstering the cryptocurrency’s reserve status and appeal.

The Price

Bitcoin rose 2.2% at Bitstamp today to $80,836, with a session-low at $78,777.

On Monday, bitcoin rose 1%, the first profit in three days away from five-month lows at $74,434.

Crypto Market Value 

The market value of cryptocurrencies rose by $45 billion on Tuesday to a total of $2645 trillion.

MetaPlanet 

Japan’s MetaPlanet raised its bitcoin holdings by 160 additional units worth $13.32 million, with an average price of $83,264 per unit.

After the new round of purchases, the company’s total bitcoin holdings are now up to 4206 units, valued at $351.31 million.

The US dollar fell in European trade on Tuesday against a basket of major rivals, resuming losses after a two-day hiatus and approaching six-month lows once more, amid mounting US-China trade tensions. 

Now global financial markets await the Federal Reserve’s meeting minutes tomorrow to look for more clues on the future of US monetary policies.

The Index

The dollar index fell 0.65% today to 102.78, with a session-high at 103.44.

On Monday, the index rose 0.55%, the second profit in a row, moving away from a six-month trough at 101.27.

Trade Tensions

The White House quickly negated a report that alleges Trump is considering a 90-day hold on all tariffs except the China tariff, calling it “fake news”. 

Trump escalated the tension with China and threatened an even bigger 50% tariff on Chinese imports if Beijing insisted on its retaliatory tariffs on US products. 

Beijing vowed to “fight till the end” and asserted it won’t bow to US “blackmail”.

Otherwise, US business leaders started to talk publicly about the damage being done to the market because of the global trade war, with JPMorgan CEO Jamie Damon warning from inflation and slower growth.

US Rates

Chicago Fed Governor Austin Goolsbey said that while corporations are concerned about tariffs, the central bank needs to look at hard data in its actual responses. 

According to the Fedwatch tool, the odds of a Fed May interest rate cut stood at 35%, while the odds of a June rate cut stood at 97%.