Gold Prices Hit 3-wk Low as Market Turmoil Forces Investors to Cash Out
Gold prices fell to a three-week low in Asian trading on Monday, as investors liquidated positions to cover losses in other markets amid intensifying global trade tensions and mounting fears of a global recession.
As of 02:12 ET (06:12 GMT), Spot Gold slipped 0.5% to $3,023.10 per ounce, its lowest level since March 13.
Gold had hit consecutive record highs last week, but retreated after Trump’s tariff announcement.
Gold futures expiring in June were largely unchanged at $3,039.0 an ounce on Monday.
Gold slides as recession fears mount after Trump tariffs
The decline in gold—typically seen as a safe haven—comes despite broader risk-off sentiment, as traders weighed the potential fallout from sweeping tariffs announced by U.S. President Donald Trump.
On April 2, Trump unveiled a blanket 10% tariff on all imports and higher, targeted duties of up to 49% on goods from key trading partners, including China and the European Union.
The move has rattled global markets, with China retaliating with a 34% tariff on a wide range of U.S. imports and the EU signaling a coordinated response. The escalating trade war has stoked fears of a sharp slowdown in global growth.
Goldman Sachs raised its forecast for a 2025 recession to 45%, up from 35% just a week earlier, while JPMorgan increased its estimate for the likelihood of a global recession this year to 60%, from a prior 40%.
“Even gold – traditionally a safe haven – tumbled from a record high it had reached earlier last week as investors sold off the precious metal along with other asset classes to cover losses elsewhere,” ING analysts said in a note.
Source : Investing.com
