Materials Gain as Gold Gains on Conflict Fears - Materials Roundup

Dow Jones11-22 06:09

Producers of metals and other raw materials rose as traders braced for knock-on effects from escalating global conflict.

Gold futures rose for the fourth straight session, as the precious metal's reputation as a safe haven during times of global unrest drew investors. There's a danger from widening conflicts in Russia and the Middle East, and trade wars cause an upward spiral in commodity prices.

"2025 could be the year when the CPI inflation rate finally breaks below the Fed's 2% target," said Jim Paulsen, an independent strategist, in a newsletter. "I have always considered tariffs to be a 'contractionary' economic policy. It is, after all, a tax increase. When has raising taxes led to greater inflationary pressures?"

The slowdown in global economic activity that will likely result from a trade war should bring prices down rather than pushing them up, said Paulsen.

 

Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

November 21, 2024 17:09 ET (22:09 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment