Buying Frenzy Could Continue if Europe Responds to Tariffs Today - Gold futures are spiking higher shortly before the regular session opening on Friday, hitting their highest levels since February 20 amid worries over the escalation of a trade war between the U.S. and China. The price surge is being driven by a weaker U.S. Dollar and the aggressive shedding of risky assets as investors seek shelter in so-called safe-haven assets after U.S. President Trump initiated long-promised sanctions, or anti-China tariffs on Thursday in an effort to protect U.S. intellectual property. The aggressive action by Trump is without ramifications as China responded overnight with tariffs of their own, triggering the start of what could be a long-term trade war. To recap the events from Thursday, Trump signed a presidential memorandum that could impose tariffs on up to $60 billion of imports from China, but only after a 30-day consultation period that starts once a list is published.
Zinc dropped amid given high inventories and a slow recovery of consumption - Zinc on MCX settled down -0.12% at 209.25 amid given high inventories and a slow recovery of consumption. Despite production cuts from maintenance works at some smelters, China’s output of zinc is likely to rise 8.5% in the first quarter of 2018 from the same period in 2017, given adequate supplies of ore in and beyond China. Pressure also seen as the threat of a global trade war that could damage growth escalated after U.S. President Donald Trump announced tariffs on up to $60 billion of Chinese goods. Trump is planning to impose the tariffs for what he says is misappropriation of U.S. intellectual property, but only after a 30-day consultation period that starts once a list is published.
Oil Prices Fluctuate Amid Middle East Tension; Launch Of Shanghai Oil Futures - Oil prices edged down on Monday morning in Asia, after a significant spike caused by tension in the Middle East. The launch of China’s yuan-denominated oil futures has also caused a stir in oil markets.Shortly beforehand, Brent crude futures surpassed $70 per barrel for the first time since January. Rising geopolitical risk in the Middle East has driven oil prices up. President Donald Trump continues to suggest the U.S. will pull out from the Iran nuclear deal, which raises concerns that sanctions will be reimposed on the country and severely limit Tehran’s ability to export crude oil. These concerns escalated just over a week ago when Saudi Arabia’s Prince Mohammed bin Salman ramped up tough rhetoric over Iran, pledging to acquire nuclear weapons if Iran develops them. His recent talks with President Trump in Washington, pledging to buy more U.S. military equipment, also show that Saudi foreign policy is becoming more aggressive.
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