Financial markets and China customs duties

[StayinThailand2much]

Trump seems to be willing to reduce China customs duties to 80%...

 

Dow, S&P, Nasdaq futures all up, and so is gold. Shouldn't they perform differently!

[Cameroni]

5 minutes ago, StayinThailand2much said:

Trump seems to be willing to reduce China customs duties to 80%...

 

Dow, S&P, Nasdaq futures all up, and so is gold. Shouldn't they perform differently!

 

The link between the S&P Index and Gold is often debated. Whilst the general view is that there is a negative correspondence, ie when the SP goes up Gold goes down, the opposite has also been known to happen. For instance in the Corona virus crash, both tanked in tandem.

 

So whilst it's often true that a negative correspondence exists, this is not always the case. It depends on macro economic factors.

 

In short the market is not fully predictable.

[StayinThailand2much]

1 minute ago, Cameroni said:

In short the market is not fully predictable.

 

Certainly true.

[scubascuba3]

Gold has gone up because more people are buying, they probably don't trust the market yet, not stable yet