Gold prices continued to decline on Monday, reaching their lowest levels in over three weeks as a broader market sell-off, triggered by recent tariff measures from the United States, impacted bullion trading.
As of 0031 GMT, spot gold was down 1.9% at $2,981.09 per ounce, marking its lowest level since March 13. Gold had reached a record high of $3,167.57 on April 3.
US gold futures dropped by 1.3%, reaching $2,997.40 per ounce. Gold prices fell more than 3% on Friday as investors sold off bullion to offset losses from a broader market downturn, driven by concerns over an escalating trade war and the possibility of a global recession.
The decline in gold prices led some dealers to speculate that investors might be liquidating their gold holdings to realize profits or cover losses and margin calls on other assets. This could potentially create a cycle of selling, further driving prices lower.
In response to recent US tariff actions, China imposed counter-measures on Friday, including a 34% tariff on all US goods and export restrictions on some rare-earth materials, exacerbating tensions between the world’s two largest economies. Following the implementation of these tariffs, over 50 countries have reached out to the White House to initiate trade talks.
Federal Reserve Chairman Jerome Powell stated that the tariffs could contribute to higher inflation and slower economic growth, presenting a challenging outlook for US policymakers.
In other precious metals, spot silver fell 2.8% to $28.74 per ounce, its lowest price in nearly seven months. Spot platinum decreased 1.7% to $900.70, and palladium dropped 2.6% to $888.00.
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