Abstract: As the epidemic spreads and the economic recovery is full of uncertainty, it is reported that the Trump administration intends to re-tax Canadian aluminum products. If Trump implements the plan, it will provoke new trade disputes.
June 22 News As the epidemic spreads and the economic recovery is full of uncertainty, it is reported that the Trump administration intends to re-tax Canadian aluminum products. If Trump implements the plan, it will provoke new trade disputes. Silver futures are stable above the key support level. From the 1-hour chart, the green kinetic energy bar is gradually shortened to the news, and silver futures have a tendency to continue to explore.
On Monday (June 22), silver futures opened at $17.805 per ounce, with the highest up to $17.950 per ounce and the lowest at $17.730 per ounce. As of press time, it was temporarily reported at $17.910 per ounce, an increase of 0.04%.
US plans to tax Canadian aluminum products
After becoming president of the United States, Trump frequently provoked trade disputes, imposed tariffs on steel and aluminum, and renegotiated multiple trade agreements. The trade situation just improved at the end of last year, but after the outbreak of the epidemic, the US economy was greatly affected, and Trump showed signs of "reapplying old skills."
According to people familiar with the matter, the United States plans to resume a 10% tariff on aluminum products imported from Canada. The source said that if Canada refuses to implement export restrictions, the United States will announce on Friday the re-imposition of 10% tariffs on aluminum products from the country.
In June 2018, the United States began to impose tariffs of 25% and 10% on steel and aluminum products imported from Canada and Mexico, respectively. Canada and Mexico took retaliatory measures against American agricultural products. In May last year, the United States announced that it had reached an agreement with Canada and Mexico, agreeing to abolish tariffs on steel and aluminum products imported by these two countries to promote the conclusion of the North American Free Trade Agreement.
Silver futures outlook
Silver futures maintained a pattern of strong volatility and remained firmly above the critical level of $17.5, which will keep silver futures bullish. Kshitij's consulting service team said that silver futures also fell slightly after yesterday's surge. Focus on the support level near $17.50 per ounce. Silver futures need to fall below the above support in order to turn into bearish in the medium term, before the silver price still has the possibility to test 18.50-19.00 USD/ounce again in the short term.
Michael McCarthy, chief market strategist at CMC Markets, said that hedging demand is affecting the entire market, and the market is concerned about the warming of the US epidemic. McCarthy added that the market is also concerned about economic growth. This supports the precious metals.
The progress of the epidemic, Sino-US relations, and Trump's trade policy trends will continue to affect the market. Any major change in the situation will increase market volatility, and silver futures are expected to break through the current range.