Today the President imposes increased tariffs on China’s imports to the tune of 25 percent. The President said, it’s all ok, because with the increased tariffs, we are making more money than the best agreement can get us. Some seem to disagree. Most investors expect these costs, one way or the other, to be passed on to the American consumer.
Equity prices continue to decline as the U.S. puts the pressure on the Chinese envoy to come to the table with a deal that would be amicable to both sides.
In the meantime, early Friday morning we are seeing all four metals in positive territory.
Also giving the price of metals a boost is the story of the U.S. Military’s decision to bring additional forces into the Middle East, based on intelligence that the Iranian regime has told some of its proxy forces and surrogates that they can now go after American military personnel and assets in the region. Additionally South Korea’s military said Thursday that the Kim Jung Un regime fired missiles from the western part of the country into the sea.
All these news stories are giving the price of Gold support.
Commodity Hedge Fund buying emerges as the price of Palladium falls below the $ 1300-dollar level. The backwardation continues to reflect structural tightness. However, the current chart indicators suggest downside price risks still remain amid continued negative signals in the global vehicles sales market.