BENGALURU- 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 percent at $3,027.90 an ounce after dropping over 1 percent earlier in the session to its lowest since March 13.
US gold futures rose 0.4 percent to $3,047.50.
Gold dropped more than 3 percent on Friday, caught up in the market’s spiral after US 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.”
