New US tariffs on $16 billion of Chinese goods

On Thursday we had a decline in Gold prices after hitting their highest level in over a week in the previous trading session. One of the reason was the fears of another round of U.S. tariffs on China and the possibility of higher interest rates that lifted the dollar. Officials from US and China in over two months finally met. They actually wish to find a way to get out this dangerous trade war. As now there are no clues that the low-level talks could halt a new round of U.S. tariffs that are going into effect on Thursday. With the interest rates increasing the cost of holding non-yielding gold while the dollar gaining more bullish momentum makes the Gold more expensive. Fung said "The fear of rate hikes is also pressuring gold. Despite Donald Trump's recent attack on rising interest rates, we think the Fed may have its way, “and he added the $1,200 level is acting as a strong resistance for the precious metal.

The International oil prices went down on Thursday, and the reason was the escalating trade dispute between the US and China, even though the decline in U.S. commercial crude inventories offered some good support. The two economic giants the United States and China escalated their dangerous trade war on Thursday by implementing punitive 25% tariffs on $16 billion worth of the other's goods. In the U.S. In oil markets, a weakness in commercial crude inventories provided WTI with a much more important and stronger support than Brent. On Wednesday the Energy Information Administration stated that the U.S. commercial crude oil inventories went down by 5.8 million barrels in the week to Aug. 17 to 408.36 million barrels.