The yellow metal is trading upside against the greenback as yields dropped for U.S. 10-year Treasury notes to 1.56%, and geopolitical tensions rose between the United States and China as well as Russia.
There seems to be a rising tension between the United States and China, as well as between the United States and Russia. Reason for the increased tension with China is that the Taiwan is once again a major concern to the current administration.
Along with that, On 15th April 2021,The executive order on “Blocking Property with Respect to Specified, Harmful Foreign Activities of the Government of the Russian Federation,” was signed by President Jeo Biden.
This executive order imposed new sanctions on Russia based on information suggesting that they had interfered with the election as well as an increased amount of internet hacking and other “malign activities” which include sending additional troops to Ukraine as well as the continuation of persecution of Russian dissidents in specifics to Alexei Navalny.
This Executive Order indicates that the administration is willing to impose rigid and far-reaching new sanctions against Russia.
Elsewhere, Taiwan and Thailand risk joining Vietnam and Switzerland in running afoul of U.S. currency manipulation triggers in Treasury Secretary Janet Yellen’s first foreign exchange report, expected this week, but whether she applies that label is not yet clear.
The Biden administration has sought to engage more constructively with trading partners and allies, and currency experts say that Yellen could veer from the aggressive approach applied by the Trump administration in the currency report, taking into account the trade and capital flow distortions of the coronavirus pandemic and reviewing the structure of the report.
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