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Gold rallies over 4% past $3100
Gold prices surged on Wednesday despite the dollar’s modest gains against most major rivals, with wild gains in most assets following new developments in the trade war.
US President Donald Trump escalated the devastating trade war with China by announcing 125% tariffs on Chinese products.
The tariffs will be immediate and are a response to China's disrespect to global markets as Trump described it.
Simultaneously, Trump announced a 90-day hold on tariffs for most other countries .
The Chinese government announced fresh retaliatory 84% tariffs on US products, deepening the trade war.
Separately, the Federal Open Market Committee’s meeting minutes showed all members unanimously voted in favor of maintaining interest rates unchanged in March.
The minutes showed concerns about weaker growth due to higher tariffs, but increased spending in some economies reduced such concerns.
Policymakers believe that high inflation could be more resistant than expected, with mounting market uncertainty due to weaker consumer spending and high tariffs.
Otherwise, the dollar index rose 0.1% as of 19:45 GMT to 103.07, with a session-high at 103.3, and a low at 101.8.
On trading, gold spot prices rose 4.2% as of 19:46 GMT, or $125 to $3115 an ounce.
Trump hikes tariffs on China to 125%
US President Donald Trump escalated the devastating trade war with China by announcing 125% tariffs on Chinese products.
The tariffs will be immediate and are a response to China's disrespect to global markets as Trump described it.
Simultaneously, Trump announced a 90-day hold on tariffs for most for most other countries .
The Chinese government announced fresh retaliatory 84% tariffs on US products, deepening the trade war.
Dow Jones surges 2500 points, NASDAQ spikes 8%
US stock indices shocked the markets with a surge on Wednesday as the trade war evolved in surprising ways.
China raised tariffs on all US products to 84% starting April 10.
It's a retaliation to Trump's 104% tariffs on Chinese products as Trump digs in deep in his trade war with China.
Trump surprised the markets with a pause on all reciprocal tariffs on other countries for 90 days as they continue to negotiate terms.
On trading, Dow Jones rallied 6.6% as of 17:27 GMT, while S&P 500 rallied 6.7% , as NASDAQ added a stunning 7.7%.
Wall Street ekes out gains despite retaliatory Chinese tariffs
US stock indices eked out gains on Wednesday even after China imposed retaliatory tariffs against all US products, as some investors saw space for bargain hunting.
China announced 84% tariffs on US products starting April 10, raising the stake in the trade war.
It comes in response to Trump's gigantic 104% tariffs on Chinese imports, while the EU faces a 20% additional tax.
Due to the escalating trade war, US stocks took a battering, with S&P 500 nearing bearish territory with a 19% tumble so far from its latest hig
In an attempt to boost the stock market, President Trump said that now is the best time to buy shares, stating that the US will become better and bugger than it ever was.
On trading, Dow Jones fell 0.3% as of 14:50 GMT to 37535 points, as S&P 500 rose 0.1% to 4985 points, while NASDAQ climbed 0.9%.