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Metals Trade Lower amid Threat of Full-Scale Trade Wars

May 31, 2018 at 18:12 by Vladimir Vyun

Markets were in disarray today on news that the United States are going to implement tariffs on steel and metal imports from its closest allies. While the duties were announced back in March, the USA made an exemption for the key allies, including Canada, Mexico, and the European Union. Yet the exemption ends tonight, and it looks like the USA are going to implement tariffs after all. The EU and Canada have already announced their own duties in retaliation.

The US dollar traded lower on the news. Usually, metals trade inversely to the greenback, but today most of them also traded below the opening level, with the only exception being palladium. That is especially surprising for gold as the metal could have profited from the resulting risk aversion due to its traditional role as a safe haven.

Futures for delivery of gold in August fell 0.11% to $1,305 per troy ounce as of 18:01 GMT on COMEX today. July silver declined 0.39% to $16.48 per ounce. Spot price for platinum slid 0.17% to $907.67 per ounce. Palladium rose 0.25% to $989.77 per ounce. July contract for copper lost 0.31% of its value to $3.0595 per pound.

If you have any questions and comments on the commodities today, use the form below to reply.

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