Commodities Decline Amid Trump Election Concerns

Following Donald Trump's victory in the U.S. presidential election, commodity prices have plummeted across the board due to a strengthening dollar and fears of impending tariffs that could disrupt global trade, particularly with China. Oil prices fell by over 1% and copper dropped more than 2%, while gold slid to a near three-week low as markets brace for potential trade tensions. Analysts, including Ole Hansen from Saxo Bank, warn that Trump's return could lead to increased tariffs on imported goods, exacerbating economic challenges. The dollar is poised for its biggest gain since 2020, making dollar-denominated commodities more expensive for foreign buyers. Additionally, Trump's administration may renew sanctions on Iran and Venezuela, further complicating oil market dynamics. Overall, the outlook for commodities is grim as the market adjusts to the implications of a Trump presidency, particularly in relation to trade policies and economic growth.