Logo of Phnom Penh Post newspaper Phnom Penh Post - Gold likely to rebound with escalation in US-China spat

Gold likely to rebound with escalation in US-China spat

Content image - Phnom Penh Post
Golden FX Link Capital business manager Nhim Kosol.

Gold likely to rebound with escalation in US-China spat

During a Labor Day news conference at the White House, US President Donald Trump discussed the possibility of decoupling the US economy from China.

He also mentioned other alternative measures, including potential massive tariffs, a ban on cotton imports from China and the prohibition of federal contracts to companies that outsource to the world’s most populous country.

China on the other hand has introduced new visa restrictions on foreign journalists working for US news organisations in its territory, adding fuel to the ongoing tensions between the two nations.

This has consequently allowed gold to potentially gain back its bullish momentum after falling to $1,916 per ounce last week.

This is further boosted by a deteriorating economic climate due to the increasing number of confirmed cases of Covid-19 – with the US topping the list of countries worst affected by the virus – and a reliable vaccine not yet officially on the scene.

Almost 6.2 million cases of Covid-19 had been reported in the US as of Wednesday, according to the World Health Organization.

With rising US-China tensions and the market still focused on developing a Covid-19 vaccine, it could be a good time to invest in gold.

The precious metal should be bought between $1,915 and $1,930, setting the stop-loss function between $1,900 and $1,905 as a risk mitigation measure, and setting the automatic take-profit function either at $1,937 or at $1,945 to cultivate a fruitful return on the investment.

MOST VIEWED

  • Hungarian exposes 90 to Covid in Siem Reap

    The Ministry of Health has discovered 90 people who have been exposed directly or indirectly to a Hungarian man infected with Covid-19. They all are required to quarantine at home and the hospital. The ministry is searching for other affected people. Among the 90, one is the

  • PM warns of ‘new Cold War’

    Prime Minister Hun Sen said the possibility of a so-called new Cold War has become a significant concern and that all countries have to reject outright, any attempt to allow history to tragically repeat itself. He made the remarks in a speech during 75th Session

  • PM: West unfair to Cambodia

    Prime Minister Hun Sen released a message celebrating the International Day of Peace on Monday, saying that some major powers and western countries had been systemically cooperating to put political pressure on Cambodia as they did in the 1970s and 1980s. Hun Sen said pressuring

  • ‘Bad news is an investor’s best friend’ – unlocking investment potential in Cambodia

    It is time to shop. Economic woes provide good pickings for investors if they know where to look The poem If, written by English Nobel laureate poet and novelist Rudyard Kipling for his son circa 1895, is widely perceived as fatherly advice for John who would

  • PM requests Russia’s Covid vaccine

    Prime Minister Hun Sen has requested that Russia provide Cambodia with its Covid-19 vaccine after the former announced it planned on mass vaccinating its population next month. The request came on Thursday through the prime minister’s Facebook page as he met with Anatoly Borovik,

  • First ‘mobile kitchen’ in Cambodia enters service

    A catering company recently rolled out Cambodia’s first “mobile kitchen” – a $50,000 container capable of serving up to 200 people at a time. The kitchen is the brainchild of Seng Hok Heng Catering Services. At 4.4m-high, 6.8m-long and 2.4m-wide (expandable to 6.8m), the kitchen is equipped