Commodity Prices Show Mixed Movement as Trump’s Tariff Policies Spark Inflation Concerns

(MENAFN) Commodity prices exhibited a mixed performance last week, driven by growing concerns over inflation due to US President Donald Trump’s escalating tariff policies. These fears have sparked uncertainty in global markets, as investors remain vigilant ahead of upcoming US economic data, including inflation figures and statements from Federal Reserve Chair Jerome Powell. There are concerns that the Federal Reserve’s monetary policy might not align with Trump’s aggressive trade tactics, further complicating the outlook for the economy.

While trade tensions with Canada and Mexico remain somewhat contained, the ongoing escalation with China is stoking fears of rising inflation. In this environment, gold surged to a record high of USD 2,886.65 per ounce, marking a 2.2 percent increase. Citibank even raised its 2024 gold price forecast from USD 2,800 to USD 2,900 per ounce due to geopolitical uncertainty and the tariff impact.

Precious metals showed mixed results, with silver rising by 1.4 percent, while palladium and platinum fell by 4.5 percent and 0.7 percent, respectively. Copper prices jumped 7.7 percent after the London Metal Exchange introduced new regulations, requiring large private transactions to be traded on its platform, raising concerns over liquidity.

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