BENGALURU- Gold fell more than 3 percent on Friday, erasing gains from earlier in the week, 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.
Spot gold was down 2.9 percent at $3,024.2 an ounce after hitting a session low of $3,015.29 earlier in the session. It hit a record high of $3,167.57 on Thursday. For the week, gold was down 1.9 percent.
US gold futures settled 2.8 percent lower at $3,035.40.
On the technical front, spot gold price managed to hold above its 21-day moving average of $3,023.
“We tend to see gold as a liquid asset being used to meet margin calls elsewhere, so it’s not unusual for gold to sell off after a risk event given the role that it can play in a portfolio,” said Suki Cooper, an analyst at Standard Chartered.
“It’s behaving in line with the historical trends.”
Global stocks fell for a second consecutive day, with the S&P 500 and Nasdaq Composite indices down about 5 percent each, after China announced additional tariffs of 34 percent on all US goods starting from April 10, in response to reciprocal tariffs unveiled by US President Donald Trump this week.
