U.S. Upcoming Trade Tariffs Push Commodities Down
On Monday gold prices and the U.S. dollar both slipped as the United States are going to impose a new round of tariffs on Chinese imports. It was informed on the weekend that U.S. President Donald Trump wants to move forward with tariffs on $200 billion in Chinese goods. The tariff level will probably be about 10%. This is below the 25% the U.S. administration said it was considering for this possible round of tariffs.
Meanwhile, gold futures for December delivery were down 0.14% to $1,199.4 per troy ounce on the Comex division of the New York Mercantile Exchange. The U.S. Dollar Index, which tracks the greenback against a basket of other currencies, traded 0.04% lower to 94.47. Asian equities also traded mostly lower on the tariffs news, with China’s Shanghai Composite, the Shenzhen Composite and Hong Kong’s Hang Seng Indexall fell more than 1%.
Meanwhile, oil prices were slightly up, as falling supplies in Iran and upcoming trade tariffs put pressure on markets. West Texas Crude oil futures rose 0.61% to $69.19 a barrel on Monday morning. Brent crude futures, the benchmark for oil prices outside the U.S., increased 0.60% to $78.56. Investors have been eyeing sanctions against Iran, which are expected to take effect in November. U.S. Energy Secretary Rick Perry said Friday that he does not foresee any price spikes and that Saudi Arabia, Russia and the United States can raise global output in the next 18 months.