Gold climbs after two sessions of losses
Gold prices rose on Tuesday after two sessions of losses with demand climbing on the precious metal as the dollar fell against most major rivals.
President Trump said during a Fox News interview that the US is undergoing a transition phase, with return of wealth to the US through trade and economic policies, including tariffs to boost local industry.
In yet another escalation, US President Trump raised tariffs on Canadian steel and aluminum imports by an additional 25% to a total of 50%.
Trump said the decision comes in response to Ontario’s decision to impose 25% taxes on electricity exports to the US.
Trump criticized Canada sharply for its anti-American tariffs scheme as he described it, asserting that the new tariffs on steel and aluminum will be enforced tomorrow.
He especially criticized Canada’s farm tariffs at “250% to 390%” on American dairy products.
US two-year treasury yields rose 1.6 basis points to 3.912%, while US 10-year treasury yields rose by 3.1 basis points to 4.244%, as 30-year yields rose by 2.6 basis points to 4.564%.
Otherwise, the dollar index fell 0.4% as of 20:05 GMT to 103.3, with a session-high at 103.9, and a low at 103..2.
On trading, gold spot prices rose 0.9% as of 20:06 GMT to $2924.5 an ounce.
Wall Street extends losses, Dow Jones tumbles over 500 points
US stock indices fell on Tuesday and expanded the losses amid new escalation in the trade war, which threatens a potential recession in the US.
President Trump said during a Fox News interview that the US is undergoing a transition phase, with return of wealth to the US through trade and economic policies, including tariffs to boost local industry.
In yet another escalation, US President Trump raised tariffs on Canadian steel and aluminum imports by an additional 25% to a total of 50%.
Trump said the decision comes in response to Ontario’s decision to impose 25% taxes on electricity exports to the US.
Trump criticized Canada sharply for its anti-American tariffs scheme as he described it, asserting that the new tariffs on steel and aluminum will be enforced tomorrow.
He especially criticized Canada’s farm tariffs at “250% to 390%” on American dairy products.
US two-year treasury yields rose 1.6 basis points to 3.912%, while US 10-year treasury yields rose by 3.1 basis points to 4.244%, as 30-year yields rose by 2.6 basis points to 4.564%.
On trading, Dow Jones tumbled 1.2%, or 519 points as of 14:56 GMT to 41,392 points, while S&P 500 slid 0.8%, or 45 points to 5568 points, as NASDAQ gave up 0.4%, or 75 points to 17,393 points.
Oil prices rise 1.5% as dollar loses ground
Global oil prices gained 1.5% in European trade on Tuesday as the dollar lost ground against major rivals, boosting greenback-denominated oil futures.
Now traders await important US crude inventory data later today from the American Petroleum Institute, expected to show a drawdown for the third straight week.
Prices
US crude rose 1.5% to $66.92 a barrel, with a session-low at $65.32.
Brent climbed 1.75% to $70.21 a barrel, with a session-low at $68.66.
US crude prices lost 1.7% on Monday, while Brent shed 1.6%, the first loss in three days after weak Chinese data hurt demand prospects.
US Dollar
The dollar index fell 0.5% on Tuesday on track for the seventh straight session, plumbing five-month lows at 103.33 against a basket of major rivals.
The dollar’s decline comes amid mounting concerns about slower US growth, and the impact of aggressive tariff policies by Donald Trump.
OPEC+
Russian Deputy Prime Minister Alexander Novak told reporters that OPEC+ will go ahead with its scheduled production hike in April but could consider other steps, including a production cut, later on.
US Stocks
Later today, the American Petroleum Institute will release initial data on US crude stocks, expected to show yet another drawdown, while tomorrow, the Energy Information Administration will release the official report.
Bitcoin rallies 4.5% away from four-month lows
Bitcoin rose 4.5% on Tuesday on track for the first profit in six days away from four-month lows on short-covering.
Now markets await mainline US inflation data for February, expected to provide more clues on the odds of future Fed rate cuts.
Prices
Bitcoin rose 4.5% at Bitstamp to $82,050, with November 10 lows at $76,600.
On Sunday, bitcoin lost 2.7%, the fifth loss in a row on risk aversion.
Crypto Market Value
The market value of cryptocurrencies rose by $70 billion on Tuesday to a total of $2.750 trillion.
Wall Street
US stock indices closed down on Monday and marked the heftiest daily loss since 2022, with all major indices plumbing six-month lows amid fears about US recession.
US Rates
Fed Chair Jerome Powell said it remains to be seen whether Trump’s tariff plans will be inflationary.
According to the Fedwatch tool, the odds of a Fed 0.25% rate cut in March stood at just 3%.
Now investors await important US inflation data this week to gather more clues.