$PAXG
Gold rebounds after three days of losses
The price of Gold has risen to $3,272 after a three-day correction. The recovery is due to news about possible talks between China and the Trump administration regarding a trade deal.
What happened?
- U.S. President Donald Trump signed executive orders to provide relief to the automotive sector.
- China is considering talking with the Trump administration about a possible trade deal.
What does it mean for Gold?
- The initial market reaction is bearish for Gold due to possible talks about tariffs.
- However, there is a significant risk: countries that are major creditors of the U.S. could use their holdings as a bargaining tool.
Example: Japan and the U.S.
- Japan is the largest foreign holder of U.S. debt with $1,125.9 billion.
- Japanese Finance Minister Katsunobu Kato said that Japanese holdings are a tool to negotiate with the Trump administration.
What's next?
- The price of Gold could remain volatile depending on trade negotiations between China and the U.S.
- Investors should keep an eye on developments in trade negotiations and their impact on the market.