Steel tariffs hit 50%, gold rises on economic fears, and Russia-Ukraine tensions grow after drone strikes. Market roundup for June 5, 2025.
The global financial landscape witnessed significant shifts today, with major developments affecting trade, geopolitics, and commodity prices.
1. US Raises Steel and Aluminum Tariffs to 50% – Global Backlash
The US officially doubled import tariffs on steel and aluminum to 50% starting June 4, citing national interest. Canada and Mexico announced retaliatory measures, while the EU called for dialogue.
Market Impact:
Risk of a new trade war.
Volatility in global metal markets.
Exporters face rising pressure.
2. Gold Prices Surge Amid US Economic Concerns
Spot gold rose 0.8% to $3,378.22/oz, with futures closing 0.7% higher at $3,399.20/oz. The USD dropped 0.5%, and 10-year US Treasury yields softened, fueling investor interest in safe-haven assets.
Market Impact:
Flight to safety strengthens.
Stock market may face pressure.
Local gold prices rise in line with global trends.
3. Russia-Ukraine Tensions Intensify After Drone Strikes
Russian President Putin vowed retaliation after Ukraine’s UAV attacks on Russian military airports. A 70-minute Trump-Putin call focused on de-escalation.
Market Impact:
Heightened risk of conflict in Eastern Europe.
Possible energy and financial market volatility.
Investors advised to monitor geopolitical risks closely.
4. Israel Unveils Laser Missile Defense System
Israel’s Rafael unveiled a cutting-edge laser system capable of intercepting missiles and UAVs without requiring citizens to take shelter.
Market Impact:
Defense strategies shift in the Middle East.
Raises security concerns among regional adversaries.
Boosts growth prospects for the defense tech sector.
5. New South Korean President Faces Key Challenges
President Lee Jae-myung took office June 4. He confronts economic downturn, North Korea tensions, and evolving US trade policies.
Market Impact:
Economic and foreign policy direction may shift.
Korean financial markets remain in adjustment.
US-Korea and inter-Korean relations under watch.
Summary Table – June 5, 2025
| Sector | Key Developments | Market Impact |
|---|---|---|
| Trade | US tariff hike, backlash from partners | Metal market volatility, trade war risk |
| Gold | Price rise amid US economic fears | Investors flock to safe assets |
| Geopolitics | Russia-Ukraine tensions escalate | Global energy & financial markets on edge |
| Defense Tech | Israel debuts laser shield system | Boost in defense sector, regional implications |
| South Korea | New president, uncertain policy direction | Economic reforms & diplomacy in spotlight |
Strategy for Investors
Monitor US–Canada–Mexico–EU trade tensions to adjust portfolios accordingly.
Consider increasing allocations to gold and other safe-haven assets.
Keep an eye on geopolitical developments in Eastern Europe and the Middle East.
Evaluate South Korean policy changes for regional market exposure.
Use LiveTrade Pro for daily financial market insights and fast updates.
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