During a Labor Day news conference at the White House, US President Donald Trump discussed the possibility of decoupling the US economy from China.
He also mentioned other alternative measures, including potential massive tariffs, a ban on cotton imports from China and the prohibition of federal contracts to companies that outsource to the world’s most populous country.
China on the other hand has introduced new visa restrictions on foreign journalists working for US news organisations in its territory, adding fuel to the ongoing tensions between the two nations.
This has consequently allowed gold to potentially gain back its bullish momentum after falling to $1,916 per ounce last week.
This is further boosted by a deteriorating economic climate due to the increasing number of confirmed cases of Covid-19 – with the US topping the list of countries worst affected by the virus – and a reliable vaccine not yet officially on the scene.
Almost 6.2 million cases of Covid-19 had been reported in the US as of Wednesday, according to the World Health Organization.
With rising US-China tensions and the market still focused on developing a Covid-19 vaccine, it could be a good time to invest in gold.
The precious metal should be bought between $1,915 and $1,930, setting the stop-loss function between $1,900 and $1,905 as a risk mitigation measure, and setting the automatic take-profit function either at $1,937 or at $1,945 to cultivate a fruitful return on the investment.