LONDON: Oil, metals and crop commodities rallied while gold fell after China and the United States agreed to lower tariffs on each other’s economies after a weekend of trade talks.
Brent crude added as much as 3.7% while copper rose 1.4%.
Gold futures fell as haven demand eased.
Soybeans and iron ore also jumped.
China will reduce its tariffs on US goods to 10% from a level that climbed to 125% when the two nations began placing retaliatory restrictions on one another.
The reduction will last for 90 days, while the United States will reduce its own curbs to 30% from 145%.
At a briefing after the talks, US Treasury secretary Scott Bessent said neither nation wanted their economies to decouple.
Commodity prices have tumbled in recent weeks as the threat of tariffs dented the outlook for global growth this year. Oil watchers have been slashing their demand forecasts. — Bloomberg
