Even if gold tends to be weaker in both Asian and European trading today. The precious metal is in the hands of the bulls. But ING analysts see gold close to a $ 1,800 breakout. The reason: the renewed tensions between the USA and China. “Investors will see history repeating itself when the geopolitical tensions – with China at the center – spark the fear of another trade war,” the analysts write.Other analysts also see the tensions between China and the US as the next major factor of uncertainty for the financial markets. Currently, the dispute appears to be unfolding, among other things, on a law regarding Hong Kong.
New statements given
“The law provides for the possibility of a clash between Chinese security and democracy-friendly protesters in Hong Kong and a review of the city’s special trade relations by the United States. Both of these can lead to continued underperformance in Hang Seng, ”said Jasper Lawler, head of research at London Capital Group, according to kitco.com. The US has already condemned the Chinese proposal, described it as “catastrophic” and asked China to rethink it. “This could lead to renewed protests in the former British crown colony and lead to the already tense relationship between China and the US deteriorating even further,” said Cartz Fritsch, an analyst at Commerzbank.