Trade war triggers an across-the-board risk aversion to commodities

Oil, metals, gold-silver fall 2-3%, cotton seheds as much as 5% as dollar strengthens

Trade war triggered by the US has hit commodity prices hard, and most of them, including bullion, metals, oil, and even agri-commodities, have fallen to risk aversion.   

On Friday, US President Donald Trump announced a 25 per cent tariff on up to $50-billion worth of Chinese imports. China immediately retaliated with a similar move.

In the last two days, the prices of oil, gold-silver, other metals, and most other commodities fell 2-3 per cent, while cotton prices fell over 5 per cent.     

Nigam Arora, a US-based analyst and author of Arora Report, said, “Fears of