US Tariffs: Gold and Crude Oil Prices Plunge Amid Global Instability
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Synopsis
The recent tariffs announced by US President Trump have triggered significant declines in gold and crude oil prices globally, with fears of a trade war escalating economic concerns.
Key Takeaways
- Gold prices have dropped significantly.
- Crude oil also sees a substantial decline.
- China responds with increased tariffs on US goods.
- Global economic activity is under threat.
- Investor fears of a trade war are rising.
New Delhi, April 7 (NationPress) The impact of the recently declared reciprocal tariffs by US President Donald Trump is being felt across the international commodity markets, leading to significant drops in the prices of essential commodities such as gold and crude oil.
As reported by the Indian Bullion Jewellers Association (IBJA), the price of 24-carat gold saw a dramatic decrease of Rs 2,613, settling at Rs 88,401 per 10 grams, down from Rs 91,014 on Friday.
Likewise, the price for 22-carat gold has fallen to Rs 86,280 per 10 grams, while 18-carat gold is currently priced at Rs 78,680 per 10 grams.
Silver prices have also faced declines, with one kilogram of silver dropping by Rs 4,535 to Rs 88,375, compared to its prior rate of Rs 92,910 per kg.
This decline in gold prices is primarily attributed to a global reduction in rates. Internationally, gold prices have decreased from their record high of $3,201 per ounce to $3,060 per ounce.
A similar pattern is observed in silver, which fell from $35 per ounce to approximately $30.40 per ounce.
Crude oil prices have also plummeted amid worries regarding a slowdown in global economic activity following the tariffs announcement.
On Monday, Brent crude was trading 2.12 percent lower at $64.24 per barrel, while West Texas Intermediate (WTI) crude dropped 2.24 percent to $60.61 per barrel.
Since the tariff announcement, crude oil prices have fallen by nearly 14 percent. Experts attribute this significant drop to fears that the global economy, particularly trade between major economies, could decelerate, potentially leading to decreased demand for oil.
In response to Trump's tariffs, China announced on Friday that it would implement an additional 34 percent tariff on American goods, intensifying investor apprehensions that a full-blown global trade war is imminent.
Although imports of oil, gas, and refined products have been exempted from Trump's extensive tariff measures, the new trade tensions could still result in higher inflation, sluggish economic growth, and escalating disputes—all of which are exerting downward pressure on oil prices, experts have noted.
