Gold descends from its top

The price of gold fell on Thursday, returning from its one-week maximum, after reducing the risks of a US-China trade war.
The spot price of the metal lost 0.6 percent of its value to a level of 1 324.96 dollars per ounce, compared with a one-month high of $1,348 on Wednesday.
Gold futures fell 0.6 percent to $1,328.50 per ounce.
After the investors pulled out of gold, the dollar rose during the Asian session, and the Asian indices pushed back from their two-month bottom.
The fall in the dollar indicates that traders take their profits, taking advantage of the growth on a short-term basis.
Gold is often used by investors as a rescue island in difficult times such as the one in which there was a danger of a trade war between the US and China. The metal, however, tends to become cheaper when the situation improves.
The spot price of gold reached bottom at 16.24 dollars per ounce.

Exceptional growth for indices, the yen is cheaper

US indices rose sharply, and the dollar appreciated against the Japanese yen as a result of moderate optimism to find a way out of the potential trade war between the US and China.
More and more reports are being made of "quiet diplomacy" between the US and China to find a compromise on trade relations between the two countries.
The dollar index, which measures the performance of green money against the six major currencies, fell to 89.208, down from 89.49 at the end of last week.
The euro returned again at trading levels above 1.2400 against the dollar, while the British pound traded at 1.4221, compared to 1.4133 late on Friday.
Concerns about potential trade wars between the US and China, and other markets have triggered a rise in rescue currencies such as the yen and the Swiss franc.
However, with lower fears, investors reversed the dollar again to the Japanese yen. This led to a significant rise and three-digit growth in US indices, including the Dow Jones blue chip index.
US indices were close to "over-sold territory," after their fall in recent days, prompting many investors to target them in search of upward correction, according to market observers.

The EU responds to Trump

The President of the US, obviously, thinks he can do whatever he wants without consequences. It turns out, however, that this is not the case and the EU is about to respond in the most unprecedented way.
EU countries intend to target imports of goods worth 2.8 billion euros from the US, ranging from T-shirts and whiskeys to bikes, if Trump continues his plan to impose a 25% import duty on imported steel.
EU countries are planning to impose reciprocal duties on consumer goods imported from the US, including agricultural and steel products.
These tariffs have been discussed between the European Commission and the EU government on Monday in Brussels.
European regulators target imports from the US, including t-shirts, jeans, cosmetics and other consumer goods, bikes and boats, worth around 1 billion euros. Targets include orange juice, bourbon, corn and other agricultural products worth 951 million euros, including $854 million in steel and industrial products.
Trump's plans to levy import duties on foreign steel products, has already met serious opposition, even in his own party. Such actions, according to political observers, risk starting a trade war as well as triggering a number of complaints in the World Trade Organization against the United States.

The Yen - the greatest winner of future trade wars

Last week, President Trump shook the market with the imposition of imported duties for steel and other products. This immediately triggered talks about potential trade wars that have affected currency markets.
The potential US involvement in a trade war with other countries around the world has led to serious sales of US stock markets.
One currency, however, wins against all the tensions and has seen a serious appreciation over rivals. And that was the yen. According to investors and analysts, however, the appreciation of the yen is just beginning.
These events are largely reminiscent of what happened in the early 1990s when the US took protectionist measures against Japan.
The yen reached a record high of 79.75 yen per dollar in 1995, when similar protectionist actions were taken by the United States.
The proposed tariffs can reduce the US economy's growth by 0.2 percentage points next year, posing additional threats as to how US trading partners will react, analysts at Barclays Plc say.
In search of security, the traders turned to the yen, the Swiss franc and the euro. Trade-sensitive currencies, like the Canadian dollar, also declined.