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Wednesday, July 6, 2022

Metal Prices Feel Pressure of Trade-War Tensions, Rising Dollar

Metal Prices Feel Pressure of Trade-War Tensions, Rising Dollar© Reuters. Metal prices feel pressure of trade-war tensions, rising dollar

Investing.com – Metal prices traded mostly lower, pressured by a rising dollar and escalating U.S.-China trade tensions as the White House sought tougher sanctions on Beijing.

for August delivery on the Comex division of the New York Mercantile Exchange fell by $7.10, or 0.58%, to $1,220.50 a troy ounce, just above session lows of $1,228.90.

U.S. President Donald Trump proposed a higher 25% tariff on $200 billion worth of Chinese imports, his administration said on Wednesday, raising fears of an escalating trade-war between the world’s two largest economies, which could hurt global growth.

China, accounting for the bulk of commodity consumption, had previously warned the U.S. against “blackmailing and pressuring” it over trade.

Gold prices were as also knocked by a sharp rise in the dollar ahead of the U.S. jobs report, which could strengthen the Fed’s case to keep hiking rates.

The nonfarm payrolls report due Friday is expected to show the U.S. economy created 193,000 jobs in July.

The Federal Reserve said on Tuesday it would continue to gradually raise rates should the economy continue to show “sustained expansion,” supported by a strong labor market and close-to-target inflation.

The , which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.47% to 94.90.

Gold is sensitive to moves higher in both bond yields and the U.S. dollar. A stronger dollar makes gold more expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding gold as it pays no interest.

fell 0.27% to $2.74, while rose 0.76% at 2,565.00.

fell 0.71% to 2,039.35, while Nickel futures rose 4.37% to 13,460.00.

fell 0.40% to $15.39 a troy ounce, while rose 1.21% to $827.10.

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Source: Investing.com

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