US Tariffs Trigger Global Commodity Shock: Gold and Crude Oil Prices Plummet
The global commodity markets are reeling under pressure following the recent announcement of reciprocal tariffs by US President Donald Trump. Key commodities like gold, silver, and crude oil have seen sharp declines, sparking fresh concerns over global economic stability.
New Delhi: The global commodity markets are reeling under pressure following the recent announcement of reciprocal tariffs by US President Donald Trump. Key commodities like gold, silver, and crude oil have seen sharp declines, sparking fresh concerns over global economic stability.
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Gold Prices See Steep Decline
According to the Indian Bullion Jewellers Association (IBJA), gold prices fell significantly on Monday:
- 24-carat gold dropped by Rs 2,613, settling at Rs 88,401 per 10 grams, down from Rs 91,014 on Friday.
- 22-carat gold is now priced at Rs 86,280 per 10 grams.
- 18-carat gold has fallen to Rs 78,680 per 10 grams.
International gold rates have also seen a correction, falling from a record $3,201 per ounce to around $3,060 per ounce.
Silver Prices Also Tumble
Silver followed suit with a major price cut. A kilogram of silver declined by Rs 4,535, currently priced at Rs 88,375, compared to the previous Rs 92,910 per kg. Globally, silver rates dropped from $35 per ounce to about $30.40 per ounce.
Crude Oil Prices Plunge Amid Global Trade Concerns
Crude oil markets are under pressure too, reacting sharply to concerns of a global trade slowdown:
- Brent crude is trading at $64.24 per barrel, down 2.12%.
- West Texas Intermediate (WTI) crude dropped 2.24%, to $60.61 per barrel.
Since the tariff announcement, crude oil has lost almost 14% in value. Market experts attribute this to fears of declining global demand due to weakened trade flows between major economies.
China Hits Back, Trade War Fears Escalate
In retaliation to the US move, China announced a 34% additional tariff on American goods, escalating fears of a full-blown trade war. While energy imports like oil and gas remain exempt from Trump’s tariffs, analysts warn that rising trade tensions could:
- Trigger higher inflation
- Slow down economic growth
- Intensify geopolitical disputes
These developments continue to put downward pressure on both gold and oil prices as investors scramble to reassess risk.
