Gold rose sharply after the decision of the trump rates on metals

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The main event of yesterday was the decision of trump on the introduction of protective tariffs on imported steel and aluminum. The President said that a decision on this matter will be made next week. Despite the fact that earlier similar actions have been announced by the administration, the markets were taken by surprise and responded with another wave of sales, and impressive.
On this wave of risk-weighted assets-is under increased pressure. Got the dollar, which painfully took the news about the aggravation of the foreign policy of America. Although the details of the plan trump yet, investors are aware that the duties will entail the response of other countries and to reduce risks, partly out of dollar positions, especially as the currency for the last time it rebounded from 3 year lows.
Taking advantage of the retreat of the USD index, gold rebounded sharply from the lows of the beginning of the year and has cut intraday losses at the end of yesterday’s trading session and today in Asia, the quotes are trying to settle in positive territory, taking advantage of the bearish bias in the dollar major currency pairs.
Oil remains under pressure, but, to stay on level 63 trying to get rid of the pressure of the sellers and to return above the level 64 to Brent. C on the one hand, the quotation presses the escape from the risks, with another – supports the weakening of the dollar. While the first factor wins, but if profit taking on USD will be developed in the course of the day, the black gold may settle in the green zone.
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Sergey Kostenko,
Investment analyst
GLOBAL FX