Gold Prices Sink to Three-Week Low Amid Global Market Turmoil

Gold prices slipped to their lowest level in more than three weeks on Monday as fears of a looming global recession and escalating trade tensions triggered a broad sell-off across global markets. Investors, rattled by U.S. President Donald Trump’s surprise tariff measures, dumped bullion to cover losses elsewhere.

Spot gold fell 0.3% to $3,027.90 an ounce by 03:31 GMT, after tumbling over 1% earlier in the session — its lowest point since March 13. U.S. gold futures, however, edged higher by 0.4%, reaching $3,047.50.

The precious metal suffered a sharp 3% drop on Friday, breaking from its traditional role as a safe-haven asset amid market volatility. The decline came in the wake of President Trump’s aggressive new tariffs, which spooked investors and sent shockwaves through equities, commodities, and currency markets.

Analysts say the gold sell-off may be driven by investors liquidating their positions to cover losses in other sectors or meet margin calls triggered by falling asset values.

“There’s a lot of confusion and uncertainty in the markets right now,” said Yeap Jun Rong, market strategist at IG. “While some of the weakness in gold prices may be attributed to profit-taking, safe-haven flows still provide a level of resilience amid the broader market volatility.”

Markets have been rocked by the deepening U.S.-China trade conflict. On Friday, China responded to Trump’s tariffs with a slate of retaliatory measures, including a 34% levy on U.S. goods and export restrictions on select rare earth metals critical to global tech manufacturing. The tit-for-tat escalations have further dampened investor confidence and raised fears of a drawn-out trade war.

The fallout has been severe. Nearly $6 trillion was wiped from U.S. stock market valuations last week alone. In Asia, Japan’s benchmark Nikkei index nosedived by nearly 9% in early Monday trading, reflecting heightened concerns over a global economic downturn.

U.S. Federal Reserve Chairman Jerome Powell acknowledged the gravity of the situation, warning that rising tariffs could fuel inflation while simultaneously dragging down growth — a challenging combination for central bankers already grappling with uncertain policy direction.

Gold, which often benefits from geopolitical instability and inflation concerns, has found itself caught in the broader sell-off as investors scramble to preserve liquidity.

Despite the current dip, some analysts remain cautiously optimistic about the metal’s longer-term performance, especially if market instability persists. “Gold’s role as a safe haven hasn’t disappeared,” said Yeap. “But in moments of extreme stress, even safe havens can come under pressure.”

With no resolution in sight for the trade dispute, and growing concerns over global economic health, investors are bracing for continued turbulence in the days ahead.