SMM News: Trump will impose tariffs on Mexican goods the latest news: on Friday morning, US President Trump tweeted that the United States would impose a 5 per cent tariff on all goods from Mexico. The 5% tariff on all goods from Mexico will take effect on June 10. The United States has raised tariffs on Mexico to 25% from October 1, a black swan event for the market. In response, Mexico responded that if the United States imposed new tariffs, Mexico would strongly fight back. Market risk aversion sentiment detonated, the international spot gold short-term further accelerated, standing above the $1290 / ounce level, up to $1293, the rebound was strong. At present, the gold bulls continue to attack, the future is expected to break through the 1300 mark.
Trump will impose tariffs on Mexican goods, and markets are spooked
On May 30, Trump announced that from June 10, the United States would impose a 5 per cent tariff on all goods from Mexico until illegal immigrants poured into the United States through Mexico, according to the CNN. If Mexico does not comply with Mr Trump's request, it will impose a 10 per cent tariff in July, 15 per cent in August, 20 per cent in September and a permanent 25 per cent in October.
Trump also said tariffs will be gradually raised until the problem of illegal immigration is resolved, when tariffs will be eliminated.
On the 17th of this month, the Office of the United States Trade Representative issued a statement announcing the abolition of tariffs on steel and aluminum imports from Canada and Mexico, and Mexico will also abolish retaliatory tariffs on US goods.
Analysts pointed out that the United States on Mexico from October 1 to raise tariffs to 25%, for the market, this is a black swan incident.
At the end of November last year, the heads of state of the United States, Mexico and Canada signed a new trade agreement, the U.S.-Mexico-Canada Agreement, which replaced the North American Free Trade Agreement (NAFTA) established in 1994.
Mr Trump's idea of using tariffs to limit immigration is not new. He said last month that if Mexico failed to stop immigrants from Central America from crossing the border illegally, the recent agreement with Mexico on car exports would not count.
He said he would give Mexico a year to curb illegal border crossings before launching new tariffs, easing his earlier threat of complete border closure, but it could still cause economic damage to both countries.
Subsequently, Mexico responded that if the United States imposed new tariffs, Mexico would strongly fight back.
Affected by the news, in addition to the Mexican peso fell more than 2%, intraday U. S. stock index futures also fell sharply, Dow futures fell more than 140 points, S & P 500 futures fell 0.6%.
As the news sparked risk aversion in the market, the short-term rally of international spot gold accelerated further, rising above the $1290 / oz mark and currently hitting as high as $1293.15 / oz in intraday trading.
Gold is happy to get God's assist, and it is expected to rise step by step in the future.
U. S. economic data released on Thursday were generally weak, with the dollar rebounding after hitting a high of 98.29 in the short term. Although the dollar's decline was not very strong, gold bulls finally found a chance to fight back, with the Jedi rebounding after falling to a low of $1274.82 an ounce, rising sharply and closing at $1288.50 an ounce.
In addition, Italy out of the "single moth", the market risk aversion continues to spread. Italian Deputy Prime Minister Salvini is prepared to dissolve the Italian government unless the five-star movement agrees to a tax plan, foreign media reported on Thursday.
According to the report, Italian Deputy Prime Minister Salvini has told members of his party that he hopes to keep the unstable coalition government in operation, but if a single tax system plan and other priority measures cannot be implemented, Then he is also ready to end the ruling coalition.
After winning the European Parliament election on Sunday, Salvini told members of the far-right coalition party at a closed-door meeting of the House of Commons yesterday that the alliance with the anti-establishment five-star movement could last for another four years, according to people familiar with the matter. Or it could end in three months.
Italian 10-year bond yields jumped and Italian stocks fell further after the news about Italy.
At present, the Brexit stalemate has not yet been resolved, and the recent unexpected news in Italy has undoubtedly exacerbated the volatile political situation in Europe, the market risk aversion has further spread, gold has been sought after, and the price of gold has rebounded as a result of the Jedi rebound.
In a report released on Thursday, Standard Chartered Bank Precious Metals analyst Suki Coope said gold remained stable despite the rise in the dollar and that gold prices would remain broadly volatile in the coming weeks, with an average price of $1285 an ounce in the second quarter. At present, the strength of the dollar has limited gold's gains, while the downside is supported by the physical market.
If other markets continue to tumble, investors could once again turn to gold as a diversified investor, according to analysts at Dow Securities (TDS). Given that gold has historically been used to hedge tail risk events, we would not be surprised to see investors adjust their allocation to gold. During this cycle, gold remains low.
The chart shows the gold daily line trend chart, the gold price broke through the strong resistance 1285 yesterday, if the gold price continues the upward trend, then the upper near resistance level is Fibonacci 38.2% back adjustment 1297, after the breakthrough further resistance level can see Fibonacci 50.0% back adjustment 1306.
If the gold price goes down, the lower support level is 23.6% in Fibonacci, which is adjusted back to 1285, and further support after falling below the downward trend line since February.