Oil and Gold Prices Surge as Trump’s Trade Tariff Policies Shake Markets
Global commodity markets saw notable shifts on Wednesday as concerns over escalating trade tensions and geopolitical uncertainty continued to dominate headlines. Oil and gold prices climbed while currency markets remained steady.
Pound Holds Firm Amid Ceasefire Hopes
The British pound held steady near $1.2933, maintaining its recent gains as hopes of a ceasefire in Ukraine offset concerns over US trade policies. The US dollar index recovered slightly after President Donald Trump threatened — then withdrew — plans to double tariffs on Canadian steel and aluminium. The move followed Canada’s decision to roll back a 25% surcharge on US electricity imports.
Meanwhile, the EU announced new tariffs on $26 billion (£22 billion) worth of US goods in retaliation for Trump’s trade measures, further escalating global trade tensions.
Gold Shines as Safe Haven Demand Increases
Gold prices climbed as investors sought refuge from economic uncertainty. Spot gold rose 0.4% to $2,921 per ounce, while futures inched up 0.1% to $2,924.
Chris Beauchamp, chief market analyst at IG, remarked:
“Gold continues to hover around the $2,930 mark, with strong support at $2,880 preventing further downside.”
Traders are closely watching the upcoming US Consumer Price Index (CPI) report, which could influence Federal Reserve interest rate decisions — a key factor impacting gold prices.
Oil Prices Rebound Amid OPEC+ Plans
Oil prices gained ground as market participants reacted to ongoing trade concerns and OPEC+’s decision to boost oil production starting in April.
- Brent crude climbed 0.4% to $69.33 per barrel.
- West Texas Intermediate (WTI) rose 0.5% to $66.57 per barrel.
The increase follows volatile market conditions triggered by Trump’s trade policies, which have disrupted key energy trade flows, particularly with Canada and Mexico. Meanwhile, rising US crude stockpiles — up 4.2 million barrels in the past week — are also influencing investor sentiment.
Outlook: Uncertain Markets Await Key Developments
With the Federal Reserve’s next meeting scheduled for March 18-19, traders are eagerly awaiting signals about future interest rate moves, which could impact both commodity and currency markets.
In the broader financial landscape, the FTSE 100 rose 0.4% to 8,527.41 points, reflecting cautious optimism despite ongoing global tensions.
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