Precious Metal Prices Thrive As Trade War Heats Up

GOLD

Federal Reserve chief vowed to “act as appropriate to sustain the expansion” in the US economy. Chairman Powell also added “The Fed can adjust its polices to developments in trade policy”. Traders felt that this indicates there will more interest rate cuts this year. The US Dollar and interest rates dropped while the DOW fell over 500 points, as precious metals moved higher.

The Chinese trade war heated up today. The Chinese State Council announced a decision to impose tariffs ranging from 5% to 10% on $75 billion U.S. goods, with more to come. This added more incentive for Gold/Silver demand and prices moved up 2%. At 11am PT today, Gold is up $27 per ounce, trading at $1,527 on excellent volume.

SILVER

Silver exploded on the upside, quickly moving up $.30 per ounce and kept going. Silver reached a high of $17.46 before seeing some light profit-taking. At 11am PT today, Silver is trading at $17.44 per ounce, up $0.37 on excellent volume.