...
By Joe Edwards
Reporter
0
Share
Newsweek is a Trust Project member
See more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.
Gold prices experienced a modest uptick on Monday, rising 0.1 percent to $3,040.57 per ounce. Spot gold rose 0.1 percent to $3,040.57 an ounce as of 7:39 a.m. ET, rebounding after dipping to a session low of $2,971.09 earlier, when some investors sold off bullion to offset losses elsewhere, Reutersreported.
Why It Matters
The recent volatility comes amid escalating trade tensions as President Donald Trump announced aggressive new tariffs, prompting China to retaliate with 34 percent levies on U.S. goods and export restrictions on rare earths.
Read More on News
What To Know
The imposition of the tariffs has intensified fears of a global recession. Investors are increasingly seeking safe-haven assets like gold to hedge against potential economic downturns. However, the recent sell-off in gold suggests that investors may be liquidating positions to cover losses in other markets, reflecting concerns over the widespread impact of a trade war.
The broader financial markets have responded negatively to the escalating trade tensions. The S&P 500 is poised to confirm a bear market, while the VIX volatility index spiked above 60, its highest level since August, Reuters reported.
...
Asian markets have also been affected, with Japan's Nikkei index falling about 9 percent on Monday. According to Reuters, the ongoing uncertainty has led investors to predict multiple interest rate cuts by the Federal Reserve this year.
The trade tensions have also affected other commodities. Oil prices dropped about 3 percent, hitting their lowest levels since April 2021.
Metals experienced significant declines, with copper dropping more than 6 percent on Friday. Agricultural commodities like corn, coffee and cocoa also faced price reductions because of decreased demand expectations and new tariffs.
What Is The Price Of Silver On Monday?
At the time of writing, the price of silver sat at about $30.44 per ounce, data from BullionVault showed.
On Monday, Reuters reported that spot silver rose 2.6 percent, which represented a recovery from an almost seven-month low.
What People Are Saying
Finance expert James Rickards, on X, formerly Twitter, on Monday: "Here's the deal on gold prices and stock crashes: At first, gold drops alongside stocks as the weak hands puke and hedge funds sell to raise cash for margin calls on stocks. You sell what you can. Then the strong hands show up and the price bounces back. That's happening now."
Ole Hansen, head of commodity strategy at Saxo Bank, told Reuters:"Once the dust settles, the rising recession risks, a weaker dollar, lower real yields and bigger rate cut expectations will all play their part in supporting a rebound....
"Gold's correction remains a relatively shallow one with key support levels holding."
What Happens Next
The trajectory of gold prices will likely be influenced by the ongoing developments in global trade policies and economic indicators. While gold remains a traditional safe-haven asset, its short-term performance may be subject to volatility as markets respond to unfolding events.
View 0 Comments
Submit Correction
View Editorial & AI Guidelines