May 6, 2019 -- Gold prices moved slightly higher last week, while silver lost a bit of ground.

Volatility is returning to the equity markets as hopes around a trade deal with China are evaporating. Stock futures traded lower ahead of today’s market open. That may give another boost to gold prices. The tariff on $200 billion in Chinese imports rose from 10% to 25% on Friday. The Wall Street Journal notes the trade battle with China has enjoyed wide support. This support is about to get tested. Thus far the impact of higher prices on American consumers has been muted.

Now that tariffs have more than doubled, Americans may start to feel some pain.

Larry Kudlow, President Donald Trump’s chief economic advisor, admitted the increased levies will hurt both sides in the trade battle. This is a departure from the President’s rhetoric suggesting the tariffs will be borne by the Chinese and not passed along to consumers at home.

If the optimism turns into pessimism on trade, we should see gold and silver on better footing with growing safe haven demand.



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