Gold prices fell to a three-week low in Asian trading on Monday as investors liquidated their positions to cover losses in other markets amid escalating global trade tensions and growing fears of a global recession.

Spot Gold dropped by 0.5% to $3,023.10 per ounce, its lowest level since March 13.

Gold had hit consecutive record highs last week but retreated after Trump’s tariff announcement.

Gold futures expiring in June were largely unchanged at $3,039.0 per ounce on Monday.

This decline in gold – traditionally seen as a safe haven – comes despite a broader risk-off sentiment as traders weighed the potential fallout from sweeping tariffs announced by U.S. President Donald Trump.

On April 2, Trump revealed a blanket 10% tariff on all imports and additional targeted duties of up to 49% on goods from key trading partners, including China and the European Union.

The move has disrupted global markets, with China retaliating by imposing a 34% tariff on a wide range of U.S. imports, while the EU signaled a coordinated response. The escalating trade war has stoked fears of a sharp slowdown in global growth.

Goldman Sachs raised its forecast for a 2025 recession to 45%, up from 35% just a week earlier, while JPMorgan increased its estimate for the likelihood of a global recession this year to 60%, up from a prior 40%.

Even gold – traditionally considered a safe haven – tumbled from its record high reached earlier last week as investors sold off the precious metal along with other asset classes to cover losses elsewhere.

The continued weakness in the U.S. dollar, coupled with growing expectations of Federal Reserve interest rate cuts, provided some support to gold, as the decline was much less compared to other financial markets.

The U.S. Dollar Index fell by 0.5% in Asian trading on Monday, leading to gains in some precious metals.

Silver Futures jumped by 2% to $29.805 per ounce, while Platinum Futures changed slightly to $914.35 per ounce.

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