Commodity Prices Witness Increases Amid U.S. Tariff Tensions

(MENAFN) Commodity markets experienced notable gains last week, spurred by escalating uncertainties stemming from U.S. tariffs and a weakening dollar.

President Donald Trump’s ongoing “tariff war” with China has triggered fears of an economic downturn, which in turn bolstered the appetite for “safe-haven assets.”

Experts argue that the United States may find it difficult to rebound swiftly from the adverse effects of its isolationist trade strategies.

Simultaneously, the U.S. dollar depreciated in comparison to other major currencies, dipping below the symbolic 100 mark for the first time since July 2023.

The U.S. Dollar Index slumped to 99.014 last week—its weakest point since April 2022.

In economic indicators, the U.S. Consumer Price Index (CPI) fell by 0.1 percent in March compared to the previous month and underperformed projections at 2.4 percent annually.

This marked the first monthly decrease since May 2020.

Meanwhile, the country’s core CPI—which strips out volatile “energy and food” prices—increased 0.1 percent month-on-month and 2.8 percent year-on-year in March, also falling short of forecasts.

Gold prices soared to an all-time peak of USD3,245.43 per ounce on Friday, registering a 6.6 percent weekly increase, as investors gravitated toward the “safe-haven commodity” amid the dollar's downturn.

Silver also saw strong momentum, jumping 9.1 percent after previous declines and ending the week at USD32.3 per ounce.

Other precious metals followed suit, with platinum and palladium advancing by 2.9 percent and 0.3 percent per ounce, respectively.

These gains were driven by broader trends in the precious metals sector and anxieties surrounding the trade conflict, although worries over the automotive industry capped some of the upside movement.

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