Commodities, including oil, metals, and grains, dipped on Wednesday as the dollar strengthened, with markets anticipating a Donald Trump victory in the U.S. presidential election. Oil and soybean prices declined by around 1.5%, while copper fell over 2% in Asian markets, pressured by the dollar’s rally. Precious metals like gold remained steady.
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The potential for renewed tariffs under a Trump administration could hit China’s industrial sectors, including metals and steel, due to the country’s reliance on U.S. imports. Analysts noted that stricter trade policies may weaken global demand for commodities, especially in oil and metals.
A Trump-led government could also revive sanctions on Iran, impacting global oil supply, and might provoke agricultural trade tensions with China over soybeans, a major U.S. export. Meanwhile, gold, traditionally a hedge against economic uncertainty, remains resilient as investors await signals from the Federal Reserve’s policy meeting.
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