3 days Ago By Reuters
April 7 (Reuters) - Gold prices fell to a more-than-three-week low on Monday amid a wider market sell-off, continuing their retreat as investors dumped bullion to cover their losses in other trades on fears of a global recession due to an escalating global trade war. Spot gold was down 0.3% at $3,027.
90 an ounce as of 0331 GMT, after dropping over 1% earlier in the session to its lowest since March 13. Sign up here. U.
S. gold futures rose 0.4% to $3,047.
50. Gold dropped more than 3% on Friday, caught up in the market's spiral after U.S.
President Donald Trump's bigger-than-expected tariff measures rippled across global markets. The drop in gold, usually a safe haven during uncertain times, made dealers speculate that investors might be selling off bullion to realize profits and potentially cover losses or margin calls on other assets. "There's a lot of confusion and uncertainties in the markets about whether there is room for de-escalation ahead, given that tensions are at an extreme right now, with many still struggling to see any quick resolution for now," IG market strategist Yeap Jun Rong said.
"While some weakness in prices could be due to profit-taking, resilience still seems to be the broader theme, with safe-haven flows offering some cushion amid the market volatility." China on Friday struck back at the U.S.
tariffs imposed by Trump with a slew of counter-measures including extra levies of 34% on all U.S. goods and export curbs on some rare earth metals.
Global recession fears wiped out nearly $6 trillion in value from U.S. stocks last week and caused Japan's Nikkei share average to tumble nearly 9% early on Monday.
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 U.S. central bank.
Spot silver gained 2.3% to $30.22 an ounce, after marking its lowest level in nearly seven months.
Spot platinum advanced 1% to $925.50 and palladium added 1.5% to $925.
00. Reporting by Anjana Anil And Anushree Mukherjee in Bengaluru; Editing by Sherry Jacob-Phillips and Savio D'Souza Our Standards: The Thomson Reuters Trust Principles. , opens new tab.
