Global events continue to affect the value of gold. As tensions lower between economic powers China and the United States, so does the price of gold.
In recent days gold’s value saw a nice increase as fear of a trade war grew. Increased tariffs from both the United States government and the Chinese government drove the concerns. People were turning to gold as a safe option for their money in case tensions became worse.
However, those fears died down a bit on Thursday, April 5. Larry Kudlow, President Trump’s new economic adviser, assured that there was not a trade war going on.
Global Events Cause For Low Gold Prices
Kudlow, still in his first week in his new role, said that Trump’s tariffs are just a proposal. He added that no one should expect firm action for a while. According to Kudlow, implementing new duties could be several months down the road.
President Trump initially announced a significant number of tariffs on Chinese goods. China responded by doing the same, targeting United States farm goods.
With the fear of a trade war subsiding, at least for now, gold is taking a hit. The precious metal slipped .15 percent to $1326.40 as of 5:05 p.m. on Thursday, April 5. With stock markets stabilizing, the need for safe havens like gold is decreasing temporarily.
Also impacting gold’s value is the tension between Greece and Turkey. The two countries ongoing flirtation with combat is not ideal for gold. Turkey is one of the largest gold jewelry producers in the world. Any conflict involving the state could force Turkey to focus on different things, leading some investors to back off.
However, experts say there is no cause for concern. Gold’s value often fluctuates, and many think it will start going up again soon. Stephen Letwin, CEO of Iamgold, says the probability is “much higher” that gold moves up instead of down.
Silver, however, saw a bump as of 5:05 Thursday. The metal rose .86 percent to $16.38. Platinum, though, dropped .55 percent to $909.