The newest moves denote a new stage in a full-scale trade war among the world’s two major economies. More escalation is considered probable since Trump is facing low popularity ahead of the US midterm elections in coming 60 days, while China doesn’t like to give up too. However, it’s hard for China to retaliate as its imports don’t fit a good number compared to US. The US clearly knew what will happen at last, else the escalation of trade war could be useless.

Trump also has the idea to add more tariffs up to 25% on the same number of Chinese products showing his firm stance to let domestic producers to improve their businesses and therefore to increase their interests. This also seems an appropriate upcoming growth in forex markets.

The fallings in Chinese stock markets recently also show that the tariffs are working as one of the clear signals in many economies is stock markets growth.

Gold prices rise slightly on Monday as the dollar recedes, while trade concerns between the US and China also support bullion. The gold futures for the August delivery on the Comex division of the New York Stock Exchange gained 0.2% to $ 1,273.60 per troy ounce.

By ICDST. The United States is considering declaring that China’s investment in US technology companies is a threat to economic and national security, according to information released on Monday, citing eight people familiar with the issue.

The news also indicated that US Treasury Secretary suggested implementing the law in a report scheduled for release on June 29.

On Friday, US President threatened to impose a 20% tariff on all US imports of cars assembled by the European Union, which would heighten trade tensions with Europe.

In response, a senior European Commission official said the EU would respond to any US initiative to raise tariffs on cars made in the bloc.

Meanwhile, the dollar index , which measures the greenback against a basket of six major currencies, fell this morning and was trading at 94.4960. The USD has strengthened since April, but the looming trade war is starting to create nervousness in the market.

Dollar-denominated assets, such as gold, are sensitive to dollar fluctuations. A falling dollar makes gold cheaper to foreign currency holders and, as a result, increases demand for the precious metal.

In the other precious metals trade, silver fell 0.54% to $ 16.370 per troy ounce, while platinum gained 0.35% to $ 878.10 an ounce.