US-China Tariff War / Trump said, soon there will be a tariff deal between US-China, gold will become cheaper

The US-China tariff war may end soon. Trump described the talks as "very good". The agreement may lead to a rise in the stock market and profit booking in gold. According to experts, gold may become cheaper by Rs 83,700. Global stability may change the investors' sentiment

US-China Tariff War: The long-running tariff war between the world's two largest economies - the US and China - now seems to be heading towards an end. Recently, US President Donald Trump, while talking to reporters at the White House, indicated that the trade talks between the two countries are going "very well". He did not clarify when the agreement will be reached, but definitely said that they are very close to a tariff deal.

This positive statement has sparked a new ray of hope in the global markets. Experts believe that if this much-awaited agreement is reached between the US and China, its impact will not only be limited to the two countries, but will also have a wide impact on the global financial scenario.

Excitement in the stock market, fall in gold!

There is a wave of enthusiasm in the stock market due to the possibility of a tariff deal. Investors believe that this will clear the clouds of uncertainty over global trade, which will bring stability to the market. At the same time, it may have an adverse effect on safe haven assets, especially gold.

Bullion market experts say that when the market stabilizes, investors turn to riskier assets, which leads to a decline in the demand for gold. If the US-China tariff war comes to an end, there may be profit booking in gold and its prices may see a big fall.

How far can gold prices fall?

According to experts, if the tariff war ends, gold prices may fall to ₹ 83,700 per 10 grams. This fall from the current high of ₹ 89,700 may be a shock to investors. However, at the technical level, gold has strong support at ₹ 89,700, ₹ 86,500 and ₹ 83,700, making it likely that the price of gold will not go below this.

Still, why does gold remain attractive?

According to Anuj Gupta, Head of Commodity and Currency at HDFC Securities, gold still remains a reliable option for investors due to rising inflation, geopolitical tensions and economic instability globally. The weakness of the dollar and a possible cut in interest rates in the US can also support gold prices.

Apart from this, strong buying by central banks and flow of investment in gold ETFs will help in giving stability to gold this year. It is also believed that the Federal Reserve may cut rates to avoid economic recession, which will be a strong factor in favor of gold.