On Friday, President Donald Trump reignited market concerns by threatening to impose an additional 100% tax on Chinese exports, along with new restrictions on critical software starting November 1. However, he softened his tone on Sunday, stating that the United States aims to "help China, not harm it."
In response, Beijing defended its controls on rare earth exports and warned that it was considering countermeasures in the event of new U.S. sanctions. Meanwhile, the ongoing U.S. budget crisis continues to worry investors, as the partial government shutdown has extended for another week, with the White House implementing mass layoffs of federal employees.
On the monetary front, markets are now anticipating two more rate cuts of 25 basis points by the end of the year, which enhances the appeal of gold. Lastly, in geopolitical developments, Donald Trump announced on Sunday that the war in Gaza was over as he traveled to Israel to witness the release of hostages, an event hailed as a significant diplomatic turning point.
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