Gold Silver Reports (GSR) – Trade Wars Need To Escalate To Support Gold — While gold could get a boost from volatile currency markets next week, analysts are not expecting to see the market benefit from safe-haven flows.
While there is unprecedented uncertainty among the Group of Seven nations — the seven most significant economies in the world – with their meeting in Quebec City this weekend, analysts are not expecting to see major fireworks.
The meeting comes as the U.S. continues to fight with Mexico, Canada, and Europe over trade practices. Countries are looking to implement trade tariffs on a variety of U.S. products in retaliation to U.S. steel and aluminum tariffs.
While a potential trade war creates some geopolitical tension, analysts say that it isn’t enough to push gold prices higher. Murenbeeld noted that trade has to significantly weaken the U.S. economy to force the Federal Reserve from raising interest rates. He added that the crisis isn’t at that point yet.
Cieszynski agreed that the trade issues aren’t bad enough to shake the U.S. economy, which will keep a lid on safe-haven assets.
Read More: Fed, ECB To Define Gold Prices Near Term Target – Analysts
“There is just so much momentum in the U.S. economy that it could easily survive these trade disputes,” he said.
Following the G7 meeting, U.S. President Donald Trump will head to Singapore for a historic Summit with North Korean Leader Kim-Jung Un.
While not much is expected to come out of this meeting, analysts say that event is another example of easing global geopolitical tensions. – Neal Bhai Reports – INDIA
