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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