Additionally, the latest Assocham-World Gold Council report states that the higher minimum support price offered to farmers (which will increase their purchasing power) could push the gold prices in India by 25 percent in the second half of the financial year 2018-19.
In the 36,000-character white paper on Monday, which Beijing said was meant to clarify the facts on bilateral economic ties and set out its stance and reasonable solutions, it pointed out that bilateral trade relations were of great significance not just to both countries, but the world.
Spot gold has fallen over 12 percent since April, which is when the trade conflict between two biggest economies of the world intensified.
Among the US items expected to be hardest hit, according to an analysis from the Trade News Centre, are printed circuit boards, desktop computers, computer parts and metal and wooden furniture. A news report suggested that China will block any potential negotiations unless U.S. president Trump withdraws his threats of further tariffs on the country.
The products include liquefied natural gas, coffee, frozen vegetables, cocoa powder and chemical products. Earlier, he threatened Beijing with further tariffs on around $267 billion of imports if Beijing retaliates against the latest measure.
"While further negotiations between United States and Chinese officials are likely, we believe additional tariffs remain the most likely outcome", Goldman said. Mainland China markets were closed for a holiday. Companies on both sides of the Pacific are already reporting disruptions to their operations and are reviewing investment plans.
Trade tensions have escalated to such a point that Xi's government decided at the weekend to cancel scheduled talks with Washington.
China summoned the USA ambassador in Beijing and postponed military talks in protest against a US decision to sanction a Chinese military agency and its director for buying Russian fighter jets and a missile system.
Scott Brown, chief economist at Raymond James in St. Petersburg, Florida said: "One of the bigger risks with these tariffs going into effect is that the United States may be pushed out of the Chinese market and it is a growing market".
"It would look weak both to the US and at home", he said, adding that there is "sufficient stimulus in the pipeline" to limit the damage of the latest tariffs on China's economy.
If the president follows through on the escalation threat, U.S. tariffs would cover all goods the nation imported from China past year, risking an escalating conflict that could upend the supply chains of multinational companies.
"With generic polls favouring the Democrats, they may feel that the trade environment will be less hostile after November 6".
China on Saturday called off planned trade talks with US officials with a move by the US State Department to sanction China's defence agency and its director on Thursday contributing to the decision, according to people familiar with the situation.
"The Trump administration must get its position straight though - what does it want from China, and who is empowered as a negotiator by President Trump to bring the deal home?"
China imports far less from the United States, making a dollar-for-dollar match on any new USA tariffs impossible. Beijing believes substantive negotiations will only be possible after the USA midterm elections in November, Bloomberg News reported.