Trump's New Tariff Threats Impact Commodities and Currencies
President Donald Trump's announcement of 25% tariffs on steel and aluminum triggered a rise in commodity prices and currency fluctuations.
Commodity Surge
The new tariffs led to:
* A record high of $2,900 per ounce for gold
* Gains in futures for aluminum, iron ore, copper, silver, and gold
Currency Movements
The announcement weakened the Australian dollar and Norwegian krone against the US dollar, while the Canadian dollar initially softened but later strengthened.
Analysts' Outlook
Analysts at ING anticipate further record highs for gold this year, potentially reaching $3,000 per ounce.
Markets' Reaction
Despite the tariff threats, US stock futures and global indexes generally remained unfazed. Bitcoin's resilience to tariff-related volatility was also noted.
EU's Response
The European Union indicated it will retaliate if tariffs are imposed on its steel and aluminum exports.
Historical Context
Trump's latest tariff threats follow a series of similar actions since taking office. Despite mounting trade tensions, investors are advised to recognize tariffs as a persistent force in the global economy.
Industry Impact
US Steel's stock surged in premarket trading after Trump announced Japanese company Nippon Steel would invest in its American rival.