Monday saw further volatility in gold prices, which fell to their lowest points in over three weeks as bullion dealers were slammed by a broader market sell-off brought on by U.S. President Donald Trump’s tariff policies.
At 00:31 GMT, spot gold was down 1.9% at $2,981.09 an ounce, the lowest since March 13. On April 3, the price of gold reached a record high of $3,167.57.
Gold futures in the United States dropped 1.3% to $2,997.40.
Investors sold off bullion to offset their losses from a broader market disaster as a deepening trade war spurred fears of a worldwide recession, causing gold to plummet more than 3% on Friday.
Dealers conjectured that investors may be liquidating gold to realise gains, maybe to offset losses or margin calls on other assets, as a result of the price decline. This can start a vicious cycle in which more investors sell, further depressing prices.
With a series of countermeasures, including additional 34% charges on all U.S. imports and export restrictions on some rare-earths, China responded to Trump’s U.S. tariffs on Friday, intensifying the trade battle between the two largest economies in the world.
Top officials defended the tariffs that destroyed over $6 trillion in value from U.S. equities last week, saying on Sunday that more than 50 countries had contacted the White House to start trade discussions since Trump imposed the new, broad duties.
Jerome Powell, chairman of the Federal Reserve, stated that tariffs raised the possibility of slower GDP and higher inflation, underscoring the challenging future for the U.S. central bank’s officials.
Spot silver XAGUSD1! fell 2.8% to $28.74 an ounce, the lowest level in over seven months, in other metals.
