Potential impact of Trump presidency on commodity markets, with tariffs affecting prices of metals and oil.

From Investing.com: 2024-07-21 04:31:02

Citi analysts predict a 66% chance of Donald Trump winning the 2024 US election, potentially impacting commodity markets. Tariffs on US imports under Trump could lead to a rise in precious metals prices, with gold possibly reaching $2700-3000/oz and silver $38/oz. A stronger dollar may limit absolute upside.

China might respond to tariffs with policy easing, benefiting metals like copper and aluminum. Citi maintains forecasts of $12k/t for copper and $2.8-3k/t for aluminum amid trade tensions. A bearish outlook for oil prices is expected due to reduced global trade and policies that may marginally depress prices.

In agriculture, a trade war could decrease CBOT row crop prices but boost Brazil’s cash basis. Citi does not foresee significant impacts on US EV development from a Trump presidency, anticipating steady growth in hybrids and EVs with subsidies and relaxed mandates.



Read more at Investing.com: What a Trump presidency could mean for commodities By Investing.com