Gold Prices Advance on China’s Counter-Tariffs

Written by Bryan Shin


August 23, 2019


Gold prices advanced on Friday following China’s USD 75 Billion counter-tariff in retaliation to the U.S. import tariff on September 1 and December 15. 

In addition, China also said it would increase import duties on U.S.-made autos and auto parts. China’s Finance Ministry said that the tariffs of 10% and 5% would likely take effect when the U.S. is supposed to impose its tariff hike. 

In response to China, Trump tweeted that the relationship with China has negatively affected the U.S. and its economy and firmly believes that the country is better off without China. Trump also mentioned that he would be responding to China’s tariffs Friday afternoon.

“Our Country has lost, stupidly, Trillions of Dollars with China over many years. They have stolen our Intellectual Property at a rate of Hundreds of Billions of Dollars a year, & they want to continue. I won’t let that happen! “ tweeted Trump. “We don’t need China and, frankly, would be far better off without them.”

China’s counter-tariff sent U.S. markets spiraling downward as the Dow Jones Industrial Average retreated by 456 points or 1.74%. The S&P 500 declined by 53.62 points or 1.83%, while the Nasdaq Composite fell by 176.75 points or 2.25%. 

During early Friday morning, gold prices were already pivoting after Federal Reserve Chairman Jerome Powell’s remarks regarding a slowing global economic growth. Powell’s comments hinted at investors that a potential rate cut could come in the near future.

Generally, investors seek safe haven in gold during times of economic slowdowns. And as the tensions between the U.S. and China continue to escalate, gold prices are expected to benefit.

The tariff news from China “helps to play into placing more pressures on the [Federal Reserve] to be more accommodative and easy during the growing rise in trade wars in the coming months, so gold will benefit from this into next week,” Peter Spina, president and chief executive of, told MarketWatch.

As of Friday afternoon, gold prices advanced by 1.84% or USD 27.80 to USD 1,536.30 per ounce. FactSet data shows that gold prices have clocked weekly gains in the past three consecutive weeks.

Stock price


52 week low/high


Related Articles

U.S. Gold Corp. Updated Economics of the Copper King Deposit

U.S. Gold Corp. Updated Economics of the Copper King Deposit

U.S. Gold Corp. (NASDAQ: USAU) stock jumped more than 120% Tuesday after the gold exploration company announced that it has internally updated the economics of the Copper King deposit to reflect the recent rise in gold prices.  Mine Development...

Dow Surges to Record Highs After China cut Import Tariffs

Dow Surges to Record Highs After China cut Import Tariffs

U.S. markets continued their bullish run on Monday as the Dow Jones Industrial Average reached record-highs once again after gaining 114.73 points or 0.40% after China decided to cut import tariffs. The S&P 500 Index 4.88 points or 0.15%,...


Notify of
Inline Feedbacks
View all comments
0 0 votes
Article Rating
Share This