Steel and aluminum prices climbed Thursday after the Trump administration said it would impose steel and aluminum tariffs on U.S. allies Canada, Mexico and the European Union starting Friday.

Analysts said, however, that overall uncertainty over the impact of the decision is likely to feed further volatility for the metals markets.

“The U.S. has long been an attractive market for offshore steel suppliers,” with steel imports having averaged 31 million metric tons per year since 2010, said Joseph Innace, S&P Global Platts’ content director for Metals Americas.


Gold prices were mixed Friday morning in Asia, with gold, silver and copper trading lower while platinum making gains.

Gold futures for June delivery on the Comex division of the New York Mercantile Exchange was down $3.5, or 0.27%, to $1,298 a troy ounce by 11:45PM ET (03:45 GMT).

As Italian political subsided, markets saw weaker demand for safe-haven assets such as gold. The country has been unable to form a government since an election in early March, but the euroskeptic populists and pro-EU establishment lawmakers renewed efforts to build a coalition rather than force new election.

The U.S. dollar index that tracks the greenback against a basket of six major currencies added 0.16% to 94.11. The greenback oscillated around the 94 value on Friday morning.

Dollar-denominated assets such as gold are sensitive to moves in the dollar – a gain in the dollar makes gold more expensive for holders of foreign currency and thus decreases demand for the precious metal.

U.S. President Donald Trump’s administration refused to extend the reprieve on tariffs on imported steel and aluminium for the EU, Canada and Mexico while threatening more tariffs on other imported products such as automobile, clouding global trade outlook. The likelihood of a full-blown trade war might cause a spike in demand for gold.


In other precious metal trade, silver futures shed 0.17% to $16.430 a troy ounce, while platinum futures added 0.20% to $908.70 an ounce. Copper lost 0.10% to $3.061.

crude oil news

Oil prices continued to dip slightly in morning trade in Asia Friday, after a reported rise in inventories in the U.S. and while investors worked to understand the implications of a divergence in the price of London-traded Brent crude and U.S.-traded WTI, the two major oil-price benchmarks.

Crude Oil WTI Futures for July delivery were trading down 0.15% at $66.94 a barrel at 9:50PM ET (01:50 GMT).

Brent crude futures for August delivery, traded in London, were down 0.26% at $77.53 per barrel.

A rise of 1 million barrels in U.S. crude inventories in the week to May 25 to 434.9 million barrels reported by the American Petroleum Institute on Wednesday surprised traders and sent prices down.

U.S. crude production has been rising relentlessly, increasing by more than a quarter in the last two years, to 10.73 million bpd, inching ever closer to top producer Russia’s output of around 11 million bpd.

Copyright © 2012 ZeroBrokerageUnlimitedTrading
Powered by