Dear Friends, 

Gold and silver prices rise: Trump's new taxes cause a stir again! 

Having after the US Supreme Court verdict to cut down the Trump Tariff on World Countries by yesterday. 

This verdict was seen as a very happy news in the worldwide stock market and the world stock markets were reacted so positively and we could see a heavy upper move in the markets. Indeed US markets also went higher. During the market close Dow Jones increased 216.5 points, S&P 500 went up 46 points and Nasdaq increased by 194.92 points. 

But the announcement of Donald Trump to impose 10% Tariff on the World Countries as mentioned his backup plan makes the confusion once again. The prices of gold and silver have risen again.  

During his press conference, US President Donald Trump strongly criticized the Supreme Court decision as a "disgrace to our nation." He openly registered his dissatisfaction with the judges who did not rule in his favor. What if the Supreme Court blocks a law (IEEPA)? Trump, saying that he has another law, announced that he would immediately impose a 10% global import tariff (Global Tariff) under Section 122 of the Trade Act of 1974.

For the markets that were relieved by the court's decision, Trump's immediate 'backup plan' has come as a minor shock. However, since the new tariff is valid for only 150 days, the market has remained stable without a major decline.

But, there is no significant movement in the Crypto market. The Global Crypto Marketcap is at $2.33T. The fear greed index is at 14 which is extreme fear. BTC still trades at 68KUSD- now BTC trades at $ 67739. 

Current market situation (February 21 morning):

Gold: An ounce of gold rose to $5,071 - $5,085 in the international market (about 1.8% increase). At times, it has even touched the target of $5,100.
​Silver: Today's hero is silver!

It has performed faster than gold and has risen by about 6-7%. An ounce of silver has reached $83 - $84, breaking several important resistances.

​What is the reason for the price increase?
​Trump's action: Trump's new 10% tax announced after the court ruling has created uncertainty in global trade again. Gold prices usually rise when there are confusions. 
​Weak US data: US economic growth (GDP) is lower than expected (1.4%).

This is due to expectations that interest rates may be cut in the future.
​Silver's double profit:

The cancellation of the new taxes is good for the industry (Industrial Demand), while Trump's new 10% tax has created fear in the market (Safe-haven Demand). These two reasons together have pushed up the price of silver.

General Caution: 
​As prices have closed strongly in the international market, the price of gold and silver are likely to see a big gap-up beginning by next morning in the markets. 

I strongly think the trade war is not over yet. Gold is still a great hedge against policy turmoil!