Markelitics's market intelligence tools provide deeper insights into these developments, highlighting how geopolitical tensions are reshaping investor behavior.
Tariffs Shake the Global Markets
President Trump confirmed the implementation of new tariffs targeting several countries, effective February 4. The measures include:
A 25% tariff on all imports from Canada and Mexico.
An additional 10% tariff on oil and gas products from Canada.
A 10% tariff on all products imported from China.
The White House has justified these tariffs as part of efforts to combat illegal migration and drug trafficking. However, the global response has been swift and severe:
Canadian Prime Minister Justin Trudeau announced retaliatory tariffs against the US.
Mexico declared new economic measures to counteract these threats.
The European Union warned of strict retaliatory measures if tariffs are imposed on EU member states.
These developments have caused a rapid decline in market confidence. The CNN Fear and Greed Index plummeted to 41, entering the "fear" zone, indicating growing anxiety over a potential global trade conflict. Major indices like the S&P 500, DAX, and Nikkei have all dropped by more than 2% in recent trading sessions, reflecting widespread investor fear.
Gold Technical Forecast: Strong Upward Momentum
Since mid-February 2024, gold has maintained a robust upward trend, now surpassing $2,800 due to increased demand for safe-haven assets. According to Markelitics's advanced analytics, the 50- and 100-period moving averages display a bullish slope, widening to signal strong buying activity. However, the current buying pace suggests potential short-term corrections near resistance levels.
Key Levels to Watch
$2,780: A new support level derived from previous all-time highs, which could serve as a zone for short-term corrections.
$2,710: A critical support level aligned with recent consolidation zones. A drop below this threshold could challenge the current bullish trend.
$2,850: A tentative resistance level. If gold surpasses this, it could confirm ongoing buying strength and extend the bullish trend.
Markelitics: Navigating Market Volatility
With the current market upheaval, Markelitics offers invaluable data-driven insights and predictive analytics to help investors navigate these turbulent times. By analyzing geopolitical events, tariff impacts, and market sentiment, Markelitics provides a comprehensive outlook on how gold and other financial assets might perform amid ongoing uncertainties.
Stay informed with Markelitics as we continue to track the evolving situation and its impact on the global financial markets.
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