The post Gold corrects lower on global market uncertainty due to Trump seeking to tighten restrictions on China appeared on BitcoinEthereumNews.com.

Gold price edges lower on Tuesday along with yields and equities. The Trump administration seeks to toughen its semiconductor restrictions on China.  Gold heads back to $2,930 and looks heavy with an overall market rout.  Gold’s price (XAU/USD)  hit a new all-time high on Monday at $2,956, though traders were unable to enjoy it for long. The precious metal trades at around $2,940 at the time of writing on Tuesday, while US President Donald Trump’s administration plans to impose more limitations on China’s technological developments. A tougher stance on semiconductor restrictions and pressuring other allies to corner China is part of that strategy.   The news creates a negative tone in markets this Tuesday. Traders are fleeing into bonds as a safe haven, which is pressuring yields for more downside (inverse correlation bond price to yield). Equities are also being slaughtered, with red numbers across the board from Asia to Europe, including  US equity futures. Except for three Federal Reserve (Fed) members who are set to speak, not much is expected on Tuesday ahead of the Personal Consumption Expenditures (PCE) due on Friday.  Daily digest market movers: On the table The Trump administration plans to expand its limitations on China’s technological developments, including tougher semiconductor curbs and pressuring allies to install restrictions on China’s chip industry. Trump’s goal is to prevent China from developing a domestic semiconductor industry that could boost its AI and military capabilities, Bloomberg reports. The CME FedWatch tool shows an uptick in chances for an interest rate cut by the Federal Reserve (Fed) in June by 25 basis points (bps), growing to 50.0%, while odds for a rate pause have diminished to only 32.6%, backed by the drop in US yields this Tuesday. Investors are looking ahead to January’s Personal Consumption Expenditures Price Index, the Fed preferred…

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Filed under: News - @ February 25, 2025 10:23 am