Global macro overview for 29/03/2018

The Chinese Ministry of Trade called on the US to withdraw tariffs and investment restrictions on the PRC on Thursday. "They can trigger a chain reaction threatening the global economy, and China will fight until the end" - said Ministry spokesman Gao Feng.At a press conference in Beijing, Gao did not provide details on a possible response from the PRC to the Donald Trump-approved criminal tariffs on Chinese products whose import to the US is worth the US $ 60 billion a year. Gao repeated that Beijing is open to negotiating a settlement, but did not confirm the news of the American press that such talks are already underway. The US media reported earlier that US officials had given the Chinese a list of demands on the opening of the automotive, financial and semiconductor market. In response to the already applicable tariffs on steel and aluminum imported to the US from which China was not excluded, Beijing announced a list of US products that China imports for $ 3 billion a year, and which may be charged with 15 or 25 percent tariffs. They include pork, fruit, wine, steel pipes and recycled aluminum.

The tariffs and investment restrictions on which Trump has already signed the memorandum are to be a punishment for Beijing for forcing American companies operating in China to create joint-ventures with local partners and transfer their technology to them.

Let's now take a look at the Gold technical picture at the H4 time frame. In a case of an escalation in the Trade Wars between China and the US, this commodity might be again treated as a safe haven asset. Nevertheless, so fat the Gold market is locked in a horizontal zone between the levels of $1,300 - $1,365 since the beginning of the year. Only a clear, sustained breakout in either direction might give more clues for further market behaviour.


The material has been provided by InstaForex Company -