Prices decline across base, precious metals markets on tariff hike fears

The continued developments on tariff hikes against China have led a general price decline across base and precious metals markets.

Base metals prices on the London Metal Exchange were weakened on Friday after further announcements from the White House of increased tariffs on China.

The chief movers were nickel at -1.2 percent, copper -0.9 percent at $6,755 per tonne, lead -0.7 percent and zinc -0.5 percent while tin and aluminum slightly changed.

This comes after Thursday’s recovery, which saw the base metals complex close with gains averaging 0.9 percent.

However, despite overnight sell-offs in metals and equities, precious metals were down across the board.

Gold, platinum and palladium prices dipped by 0.2 percent as gold sold for $1,326.04 per ounce while silver prices down by 0.4 percent at $16.32 per ounce.

This followed a generally bearish day on Thursday that saw gold prices drop by 0.4 percent, platinum fall by 0.5 percent and palladium weaken by 2.5 percent, while silver bucked the trend with a 0.4 percent rise.

Volume remained light with 2,931 lots traded in London as China remains on holiday to mark the Qing Ming Festival, or tomb-sweeping day.

In wider markets, spot Brent crude oil prices depleted by 0.85 percent at $67.89 per barrel as the yield on US 10-year treasuries grew firmer at 2.82 percent and the German 10-year bond yield remains at 0.51percent.

The base metals are reacting to the trade rhetoric, having started to find some support in recent days, prices are weaker again this morning, but overnight trading would have been more pronounced as volumes have been light with China on holiday.

The fact gold prices have not reacted positively to the latest escalation in trade tariffs, while industrial metals and equities have sold off, suggests another round of risk-off.