Risk aversion is another headwind for metals prices

The recent escalation in global trade tensions and ongoing weakness in the world economy have led to a sell-off in risky assets, including most industrial metals. In contrast, the price of gold has received a boost owing to a rise in safe-haven demand. Looking ahead, we expect that global economic growth will slow in the coming months, which we think will simultaneously lower the prices of industrial metals and support the prices of gold and silver.