The stronger dollar and speculation that a trade war will hamper demand fueled a drop in raw materials, with the Bloomberg Commodity Index declining for a second straight day. Federal Reserve Chairman Jerome Powell said this week that trade is a “risk” to the outlook, and that concerns about changes in trade policy are rising even if the impacts aren’t yet seen in economic numbers.
The tariffs mean China “won’t be importing as much of the base metals,” said Peter Thomas, a senior vice president at Chicago-based metals broker Zaner Group. “As these tariffs take affect, we’ll see less consumption from each side until it gets settled. It started with base metals and it’s pulling on gold.” China is the biggest consumer of industrial metals.
Gold futures for August delivery fell 1.6 percent to $1,292.20 an ounce at 10:14 a.m. on the Comex in New York, on course for the biggest decline since May 15.
Donald Trump is not a conventional politician, he is in fact following through on his campaign promises even though no one seems to have believed he was serious before he was elected. As Angela Merkel pointed earlier this week, the USA enjoys a net surplus with Germany when service providers like Google and Facebook are included. However, that kind of finessing of the data is not something the base Trump is appealing to is interested in.This section continues in the Subscriber's Area. Back to top