GOLD prices continued to face turmoil on Monday, and hit their lowest levels in more than three weeks, as a wider market sell-off triggered by US President Donald Trump’s tariff measures impacted bullion traders.
Spot gold was down 1.9 per cent at US$2,981.09 an ounce, as of 0031 GMT, its lowest level since March 13. Bullion hit a record high of US$3,167.57 on April 3.
US gold futures fell 1.3 per cent to US$2,997.40.
Gold dropped more than 3 per cent on Friday as investors sold off bullion to cover their losses from a wider market meltdown as an intensifying trade war sparked concerns of a global recession.
The drop in prices made dealers speculate that investors might be selling off gold to realise profits, potentially covering losses or margin calls on other assets. This could trigger a cycle, with more investors selling, further driving down prices in a negative feedback loop.
China on Friday struck back at the US tariffs imposed by Trump with a slew of counter-measures including extra levies of 34 per cent on all US goods and export curbs on some rare-earths, deepening the trade war between the world’s two biggest economies.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
More than 50 nations have reached out to the White House to begin trade talks since Trump rolled out sweeping new tariffs, top officials said on Sunday as they defended levies that wiped out nearly $6 trillion in value from US stocks last week.
Federal Reserve Chairman Jerome Powell said tariffs increased the risk of higher inflation and slower growth, highlighting the difficult path ahead for policymakers at the US central bank.
In other metals, spot silver retreated 2.8 per cent to US$28.74 an ounce, marking to its lowest level in nearly seven months.
Spot platinum eased 1.7 per cent to US$900.70 and palladium lost 2.6 per cent to US$888.00. REUTERS
Share with us your feedback on BT’s products and services
