- External gold day this Tuesday with losses on the quotation board.
- The Trump administration seeks to ride China and tighten semiconductor restrictions.
- Gold returns to $ 2,935, although it still looks heavy with the total market guidance.
The Gold’s (Xau/USD) price is the highest new ever on Monday at $ 2956, just hours before the Trump administration released more details about the upcoming definitions. Precious metals are trading of about $ 2940 at the time of writing this report on Tuesday, after the administration of US President Donald Trump informed information technology for plans to impose more restrictions on technological developments in China. There is a stronger position on semiconductor restrictions and pressure on other allies to China in the corner part of that strategy.
The news creates a negative tone in the markets this Tuesday. Traders flee to the bonds as a safe haven, which presses returns for more negative aspect (the price of reverse correlation with bonds). The shares are also slaughtered, with red numbers in all fields from Asia to Europe, including American stock futures. With the exception of three members of the Federal Reserve (Fed) who are scheduled to speak, it is not expected to be much on Tuesday before PEC’s expenses (PCE) on Friday.
Daily Digest Market Movers: The Federal Reserve is still silent
- The Trump administration plans to expand its restrictions on technological developments in China, including the most striking semiconductor restrictions and pressure allies to install restrictions on the chips industry in China. Trump’s goal is to prevent China from developing the semiconductor industry that can enhance its capabilities of artificial intelligence and military capabilities.
- The CME Fedwatch tool shows an increase in the chances of reducing the interest rate by the Federal Reserve (Fed) in June 25 BPS, which grows to 50.0 %, while the possibilities of stopping the stop rate to 32.6 % are only supported by The decline in the United States returning on Tuesday.
- Investors are looking for a personal consumption price index in January, and the preferred inflation scale of the Federal Reserve, which is scheduled to be issued on Friday, to obtain evidence of monetary policy, with the expectation that the index will cool down its slower since June.
- Fer Fice Vice Chairman Michael Barr will submit a speech on the main financial stability issues in New Haven, Connecticut, the United States at 16:45 GMT.
- Tom Parkin, Richmond Fed, will ask a letter entitled “inflation at the time and now”, followed by a question and answer at an event hosted by the Rotary Club in Richmond, expects around 18:00 GMT.
- At 21:15 GMT, the President of the Federal Reserve in Dallas Lori Logan will talk about the future of the central bank’s public budget at the annual research conference at England Bank in London, UK.
Technical Analysis: The United States Session to become interesting
The rapid decrease under the daily axle point near $ 2,943, indicating a gold problem on Tuesday. There is a sale pressure, and it seems that buyers have already tried to restore gold over the daily axis in early Asian trading but they failed. S1 support has been supported at $ 2,930 at the present time, although this level explodes, the S2 support only comes at a price of $ 2908.
In the upscale direction, the high at all at $ 2956 is still the main level of viewing. On the top, the daily R1 resistance comes at $ 2,964 after that. Moreover, the R2 resistance is $ 2,977 before considering the $ 3,000 sign.
On the negative side, the S1 support comes at $ 2,930, which coincides almost with the decrease in the Monday in the American session. If this level is not related, the large number of $ 2900 is turned on with the support of the S2 at $ 2908.
Xau/USD: Daily chart
Customs fees are common questions
Customs duties are useful customs duties on some imports of goods or a category of products. Customs duties are designed to help local producers and manufacturers to be more competitive in the market by providing the price feature on similar goods that can be imported. Definitions are widely used as fever tools, along with commercial barriers and import shares.
Although customs tariffs and taxes generate government revenues to finance public goods and services, they have many differences. Customs duties are pre -paid in the entry port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while customs duties are paid by importers.
There is a school of thought between economists regarding the use of definitions. While some argue that definitions are necessary to protect local industries and address commercial imbalances, others see them as a harmful tool that can push prices up in the long term and lead to a harmful commercial war by encouraging customs tariffs.
During the period before the presidential elections in November 2024, Donald Trump explained that he intends to use the customs tariff to support the American economy and American producers. In 2024, Mexico, China and Canada accounted for 42 % of the total imports of the United States. During this period, Mexico emerged as the best source with $ 466.6 billion, according to the American Statistical Office. Thus, Trump wants to focus on these three countries when imposing definitions. It is also planned to use the revenues created by definitions to reduce personal income taxes.