Gold climbs to three-week high as dollar dips
Gold prices rose on Monday as the dollar dipped against most major rivals amid persistent concerns about the US-China trade tensions.
China asserted its commitment to take all measures to defend its interests, while condemning US President Trump’s claim that China violated the Geneva trade agreement.
Otherwise, US-EU tensions deteriorated even further as Trump vowed to increase steel tariffs to 50%, with Brussels warning that such a step would hurt trade talks.
The US ISM manufacturing PMI fell to 48.5 in May from 48.7 in April, while analysts expected 49.3.
Otherwise, the dollar index fell 0.6% as of 20:28 GMT to 98.7, with a session-high at 99.4, and a low at 98.6.
On trading, gold spot prices rose 2.7% as of 20:30 GMT to $2403.8 an ounce.
Wall Street opens June lower
US stock indices fell at the opening of June, amid renewed concerns about the US-China trade war.
China asserted its commitment to take all measures to defend its interests, while condemning US President Trump’s claim that China violated the Geneva trade agreement.
Otherwise, US-EU tensions deteriorated even further as Trump vowed to increase steel tariffs to 50%, with Brussels warning that such a step would hurt trade talks.
On trading, Dow Jones fell 0.4% as of 15:55 GMT, or 182 points to 42,087 points, while S&P 500 shed 0.2%, or 13 points to 5898 points, as NASDAQ gave up 0.1%, or 17 points to 19,096 points.
Copper futures rise amid tariff concerns
US copper futures rallied 6% on Monday, expanding the price gap with the London prices amid speculation about new US tariffs after Trump raised steel tariffs from 25% to 50%.
US copper futures rose 5.7% today to $4.9175 a pound, the highest since April 3, while three-month standard prices rose 1.1% to $9597 a ton at the London metals exchange.
The US-London price gap expanded to $1231 a ton, compared to $759 on Friday.
In February, Trump ordered an investigation into the use of potential tariffs on copper imports to boost US production of this critical mineral for EVs, chips, and military equipment.
Aluminium prices settled at $2443 a ton at the London Exchange away from May 12 lows at $2425, while US aluminium premium on the London price rose by 54% compared to Friday to $1279 a ton.
Lead prices rose 0.9% to $1975, while zinc added 1.7% to $2663, as tin rose 0.8% to $30,600, while nickel climbed 0.9% to $15,365.
A weaker dollar bolstered industrial metals and made them cheaper to holders of other currencies.