American small and medium-size companies that rely on China are scrambling to adjust their business plans in response to the escalating trade war.Traderead more
Here are the products that stand to be the most affected by China's new tariffs on $75 billion worth of U.S. goods.Marketsread more
Trump said he will raise tariffs on $250 billion in Chinese goods to 30% and hike duties on another $300 billion in products to 15%.Politicsread more
China said on Saturday it strongly opposes Washington's decision to levy additional tariffs on $550 billion worth of Chinese goods and warned the United States of consequences...Politicsread more
The European Union will respond in kind if the U.S. imposes tariffs on France over digital tax plan, EU chief Donald Tusk told G-7.Technologyread more
Stocks dropped after Donald Trump ordered that U.S. manufacturers find alternatives to their operations in China.US Marketsread more
The final week of August could be highly volatile as markets fret over the economy and the latest developments in trade wars.Market Insiderread more
Federal Reserve Vice Chair Richard Clarida said Friday that the global economy has deteriorated in the past month.Marketsread more
The latest escalation in the trade war ups the odds the economy will fall into recession and that the Fed will aggressively cut rates.Market Insiderread more
"We don't need China and, frankly, would be far better off without them," Trump tweeted.Politicsread more
Recent trade friction between the two Asian powerhouses has morphed into a dispute with political implications that go far beyond the region.Asia Politicsread more
Gold prices fell on Tuesday as concerns about a further escalation in the U.S.-China trade war boosted the U.S. dollar, eroding bullion's appeal as it tested key technical support.
The dollar climbed to a 2-1/2-month high, supported by worries about an escalation of the U.S.-China trade war.
"Gold is not behaving as a safe-haven amidst news of the tariffs," said Walter Pehowich, executive vice president of investment services at Dillon Gage Metals.
"As long as the dollar continues to stay up at these levels or go higher, gold will be under pressure. We are now in the $1,215- $1,235 trading range. That's the levels we expect gold to stay in until the mid-term elections."
The midterm elections in the United States next week will determine which party controls the U.S. Congress.
Gold prices have slipped around 10 percent from their April peak as investors turned to the dollar as a safe-haven while the trade war unfolded against a background of higher U.S. interest rates.
A firmer dollar makes gold more expensive for holders of other currencies, while rising U.S. interest rates boost the opportunity cost of holding non-yielding bullion.
On the technical front, gold was testing support at the 100-day moving average around $1,220.
"If we drop back below the 100-day moving average, speculators could be inclined to add short positions again after they slashed them massively in the last 2-3 trading weeks. There could be risk that we could drop towards $1,200 again," said Commerzbank analyst Carsten Fritsch.
Wall Street bank Goldman Sachs said gold could find support from prospects of slowing U.S. growth and a pick up in core inflation.
Gold prices have gained about 2.8 percent this month, on track to break a six-month losing streak, the longest since a downturn from August 1996 through January 1997.
Investors' inclination towards gold can be seen in the holdings of the largest gold-backed exchange-traded-fund (ETF), New York's SPDR Gold Trust, which rose to their highest in two months, at 24.27 million ounces, on Monday.
In other precious metals, silver was up 0.21 percent to $14.48 per ounce, after slipping to a near three-week low of $14.33.