It’s been dragging on for what feels like years now but are there signs that the US China trade war could be set to take a more promising turn? Reports late this week suggested that the Trump administration could be considering seeking a truce with China. Emphasis on the word ‘could’ here as neither side has confirmed this intention and, as we have seen in the past, the pendulum seems to swing quickly from promising to all out trade war in this dispute.
Fuelling the truce talks, America has said it will marginally push back the enactment of some of its tariffs against China with China exempting some US products from its own tariffs.
With China having lodged a formal complaint against the US with the World Trade Organisation and President Trump known to stoke the fires on Twitter, we won’t hold out much hope that a permanent resolution is on the horizon quite yet – but it is fantastic news if you want to invest in gold now. With markets temporarily lulled, buy now to capitalise before the spat heats up once again and sends gold prices soaring to new heights as a safe haven asset.