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Gold Prices Stabilize Above $3,040 as Trade Tensions Escalate

U.S.-China tariff measures and recession fears drive gold's safe-haven appeal, while broader markets face significant declines.

President Donald Trump holds up a chart while speaking during a “Make America Wealthy Again” trade announcement event in the Rose Garden at the White House on April 2, 2025 in Washington, D.C.
Gold bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. REUTERS/Angelika Warmuth/File photo
Gold had rallied 15 per cent this year but, like Michael Caine’s ill-gotten gains in The Italian Job, it’s on the slide
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Overview

  • Gold prices rose 0.1% to $3,040.57 per ounce on Monday, rebounding from a session low of $2,971.09 as investors sought stability in volatile markets.
  • President Donald Trump's new tariffs and China's retaliatory measures, including 34% levies on U.S. goods, have intensified global recession fears.
  • Broader financial markets are under pressure, with the S&P 500 nearing a bear market and Japan's Nikkei index dropping 9% on Monday.
  • Declines in other commodities, such as a 3% drop in oil prices and a 6% drop in copper prices, highlight the widespread economic impact of trade tensions.
  • Analysts predict continued support for gold prices due to rising recession risks, a weaker U.S. dollar, and expectations of Federal Reserve rate cuts.