The Season for Gold
By: Richard (Rick) Mills
GoldSeek.com
Wednesday, 5 June 2019
Gold was riding high Monday on bad news regarding the US economy, causing stocks to fall and Wall Street traders to pile into bullion.
US markets were choppy on the first trading day after June 1, when the United States increased the tariff on $200 billion of Chinese imports from 10% to 25%. Shares of the so-called ‘FAANG’ stocks slumped, pulling the S&P 500 and the Dow with them, after media reports that the Department of Justice is weighing actions against Google and Apple, and the Federal Trade Commission said it wants to conduct a probe against Facebook for improper use of data.
Contributing to the jitters was a white paper from China published over the weekend that blamed the US for escalating the trade war (ie. imposing 25% tariffs following an accusation that China backtracked on commitments agreed to earlier):
“The U.S. government accusation of Chinese backtracking is totally groundless. It is common practice for both sides to make new proposals for adjustments to the text and language in ongoing consultations,” the white paper read. “In the previous more than 10 rounds of negotiations, the U.S. administration kept changing its demands. It is reckless to accuse China of ‘backtracking’ while the talks are still under way.”
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