Oil and Gold Prices Fall Amid Renewed Tariff Threats
Oil prices fell on Friday, pressured by renewed tariff threats from U.S. President Donald Trump and growing concerns over Chinese demand.
Brent crude for April delivery dropped 1.16% to $73.18 per barrel, while West Texas Intermediate (WTI) for the same month fell 0.84% to $69.76 per barrel.
On Thursday, Trump announced that starting March 4, Chinese imports to the U.S. would face an additional 10% tariff, following a similar 10% levy imposed in early February.
Washington also plans to impose a lower 10% tariff on Canada’s energy sector. Canada accounts for 60% of U.S. crude oil imports.
Chinese Response to Tariffs
In response, Beijing vowed on Friday to take “all necessary countermeasures,” raising fears that the ongoing U.S.-China trade war could weigh on global economic growth.
Traders are also closely watching China’s oil demand. The country, the world’s largest crude consumer, is facing economic “difficulties,” according to Chinese President Xi Jinping. Analysts warn that if China’s demand has already peaked, sustaining higher oil prices in the future will be challenging.
Gold Market
Meanwhile, in the gold market, prices continued to decline, driven by a strengthening U.S. dollar, which gained momentum after President Donald Trump announced a 25% tariff on the European Union.
With U.S. inflation data pointing to a potential price surge, the Federal Reserve appears poised to adopt a more aggressive stance on monetary policy.
Gold prices had surged to an all-time high, nearing $3,000 per ounce, pushing the market into overbought territory and increasing the risk of short-term selling pressure.
Earlier this week, prices hit a new record for the eleventh time, reaching $2,965 per ounce, driven by heightened demand for safe-haven assets. As of the latest market data, global gold prices stood at $2,857.30 per ounce.
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