#USChinaTradeTalks

are underway in London, with US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer meeting with China's Vice Premier He Lifeng. These talks aim to ease trade tensions between the two nations, which have been escalating since 2018 when former US President Donald Trump imposed tariffs on China, claiming unfair commercial practices and intellectual property theft ¹ ².

*Key Discussion Points:*

- *Trade Deal*: The US and China signed a Phase One trade deal in January 2020, requiring China to make structural reforms and changes to its economic and trade regime. However, tensions have resumed under the current US administration.

- *Tariffs*: The US has imposed 60% tariffs on Chinese goods, which China is expected to counter with its own tariffs, potentially disrupting global supply chains and impacting consumer prices.

- *Economic Impact*: A positive outcome from these talks could boost the US Dollar and US assets, while a negative outcome could lead to increased market volatility ¹.

*Market Reactions:*

- *Gold Price*: The gold price is trading cautiously, awaiting the outcome of the trade talks. A positive development could lead to a decline in gold prices, while a negative outcome could support safe-haven demand.

- *Currency Markets*: The US Dollar Index has corrected to around 99.00, with the Indian Rupee advancing against the US Dollar ahead of the trade talks.

- *Cryptocurrency Market*: The broader cryptocurrency market is edging higher, but facing headwinds amid uncertainty surrounding the trade talks