From Investing.com: 2025-06-02 06:26:00

President Trump has accused China of violating a trade deal and has threatened to increase tariffs on steel and aluminum to 50%. This has caused the dollar to slide and stock futures to point to a lower Wall Street open. Gold is attracting safe-haven flows, while oil gains due to OPEC’s decision to maintain production levels. The US currency is starting the week on the back foot following the latest trade tensions, with Fed Governor Waller predicting lower interest rates later this year.

In addition to the drop in the dollar, Wall Street is expected to open lower. The Atlanta Fed GDPNow model is forecasting 3.8% growth for Q2, but concerns remain about the impact of escalating trade tensions between the US and China. Data releases this week, including the PMI index and jobs report, will be closely watched. Gold has rebounded amid risk aversion, while oil prices have increased following OPEC’s decision to maintain production levels.

Despite worsening trade relations, gold is rebounding and oil prices are rising. OPEC’s decision to maintain production levels has led to the increase in oil prices, despite concerns about oversupply. The recovery in oil prices may be short-lived if trade tensions between the US and China continue to escalate.



Read more at Investing.com: US Dollar Slides Amid Simmering Trade Frictions