Commodity Trading in Chennai: Gold ticks up on Iran tensions; firmer dollar limi...

Commodity Trading in Chennai: Gold ticks up on Iran tensions; firmer dollar limi...: Gold prices gained on Monday following a steep fall in the previous session as tensions in the Middle East and weaker financial markets sup...

Gold ticks up on Iran tensions; firmer dollar limits upside - Commodity Trading in Chennai

Gold prices gained on Monday following a steep fall in the previous session as tensions in the Middle East and weaker financial markets supported the metal, while a stronger dollar kept a lid on gains.

"Over the weekend, what happened between Iran and the United Kingdom is supporting gold prices today," said Brian Lan, managing director at dealer GoldSilver Central in Singapore. "Also, equities are lower and at this point of time with geo-political tensions and the Fed looking to cut rates, gold looks attractive, but people are worried about the stronger dollar." www.indianbusinesstrade.com 

Commodity Trading Chennai

An ongoing trade battle between the United States and China has magnified the impact of tariffs on commodity prices and economic growth. As we’ll soon see, trade barriers have a ripple effect on global markets, influencing everything from commodities to foreign direct investment (FDI).

Like any other market, commodities are influenced by a range of technical and fundamental factors. In the current macroeconomic climate, trade tensions are having a direct impact on commodities such as agriculture and crude oil. That’s because the two largest superpowers, the United States and China, have engaged in a tit-for-tat trade war that threatens to throw global economic growth off stride.

The impact has already been felt. China’s economy is fresh off its worst year of expansion in nearly three decades and the International Monetary Fund (IMF) has already lowered its growth outlook this year and in 2020 over the perceived trade threat. As a large consumer of commodities, China’s slowdown has had a direct impact on how commodities are priced.

Learn here about how an interest rate hike can affect commodities.