Gold prices continued to fall on Monday (today), puzzling
investors who typically view the metal as a safe-haven asset during times of
crisis. Spot gold dipped below $3000, marking its third consecutive session of
losses.
The decline follows a more than 3% drop on Friday when US
President Donald Trump’s broad tariff measures triggered widespread market
turmoil. Nearly $6 trillion in value was wiped from US stocks last week,
amplifying concerns about a looming global recession.
Tariff Fears Spark Gold Liquidation Wave
Despite mounting fears of an economic downturn, investors
appear to be liquidating gold holdings. Analysts attribute the move to
profit-taking and margin calls across other asset classes, forcing some
investors to sell gold to cover broader losses.
Trump’s 10% blanket tariff on imports is now in effect, with
steeper levies for several countries expected later this week. The escalating
trade war has fuelled volatility in financial markets and added pressure on
policymakers.
Federal Reserve Chair Jerome Powell warned that the tariffs
could heighten inflation risks and slow economic growth, underlining the
complex challenge facing the US economy.
BREAKING:Gold price hits $3200, a record high after US President Trump announced aggressive reciprocal tariffs, sparking fears of a full-blown global trade war and prompting investors to seek safe-haven assets. pic.twitter.com/Xt49mz57ZL
— Current Report (@Currentreport1) April 3, 2025
You may find it interesting at FinanceMagnates.com: Trump’s
Tariffs, Global Market Chaos: Is This the New Black Monday?
Gold Forecast Faces Uncertainty After Recent Decline
Jeffrey Gundlach, CEO and Chief Investment Officer of
DoubleLine Capital, recently
projected that gold prices could reach $4,000 per ounce. Speaking during an
investor call, he highlighted the metal’s strong upward momentum, which began
around the $1,800 level and saw gold surpass the $3,000 mark for the first
time.
Gold’s going to reach $4,000, recession probability at 60%, says Gundlachhttps://t.co/40sYZ8PmZh
— David Lee (@DavidLe76335983) March 16, 2025
Gundlach pointed to sustained central bank buying as a key driver,
framing gold as a store of value amid financial system uncertainty.
However, market conditions have shifted. The recent
broad-based selloff has pressured gold prices, pushing them to $2,975. This
reversal has raised questions about the near-term path for gold and whether
Gundlach’s $4,000 target remains achievable under current market stress.
This article was written by Tareq Sikder at www.financemagnates.com.
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