Market Fluctuations Amid Trump’s Decisions and Their Impact on Oil and Gold
Oil and gold markets experienced significant fluctuations due to a series of economic decisions
and measures taken by former U.S. President Donald Trump.
These developments led to notable changes in energy and precious metal prices,
amid growing concerns over escalating trade and geopolitical tensions.
Content:
Oil
Oil Price Fluctuations Under Trump’s Decisions
It prices oscillated between gains and losses under the impact of a series of decisions and measures announced
by former U.S. President Donald Trump.
These measures included a threat to impose tariffs of up to 25% on oil producers from Canada and Mexico,
alongside orders to boost domestic energy production.
Brent crude surpassed $80 per barrel after three consecutive days of losses,
while West Texas Intermediate crude neared $77. Trump also declared a national energy emergency
but refrained from revealing details on tariffs related to China,
instead directing his administration to address global unfair trade practices.
Market Disruptions and Sanctions Expectations
Oil prices started the year strong due to increased heating demand driven by cold weather and U.S. sanctions on Russia,
which disrupted global oil flows.
With the potential for new sanctions on Iran and Venezuela, concerns about market stability continue to grow.
Trump also reaffirmed plans to refill the U.S. Strategic Petroleum Reserve,
which had reached its lowest levels since the 1980s,
while signing an order to withdraw from the Paris Climate Agreement and lifting restrictions on offshore oil and gas leasing.
Gold
Rising Gold Prices Amid Tariff Tensions
Gold prices saw a significant rise following Trump’s announcement of his intention to impose tariffs on Mexico and Canada,
with the price per ounce reaching $2,720.
This increase occurred despite the postponement of similar tariffs on China,
raising concerns about the escalation of a trade war with neighboring countries.
Impact of Decisions on Silver and Other Metals
Silver futures also experienced a temporary rise of 0.8% after Trump’s statements, only to retreat later.
It remains unclear whether the proposed tariffs will include silver imports,
as market volatility and rising premiums on futures contracts persist.
Inflation Concerns and Monetary Policy
Investors have focused on inflation expectations amid Trump’s economic plans,
which include tax cuts and increased spending.
These measures could limit the Federal Reserve’s ability to continue monetary easing,
affecting gold’s appeal as a safe-haven asset.
Monitoring Gaza Truce Developments
Markets were also influenced by a long-awaited truce agreement between Hamas and Israel,
easing geopolitical tensions slightly.
Nevertheless, gold prices are expected to see further gains due to increased demand for safe-haven assets amid global uncertainty.
Market Fluctuations Amid Trump’s Decisions