Gold price retreats sharply after record highs as traders seek liquidity during market-wide selloff
Gold prices witnessed a steep decline in the past 36 hours as a wave of profit-taking and liquidation swept across global financial markets. June gold futures settled at $3,139.30, falling by $50.90 or 1.59%. The precious metal dropped to an intraday low of $3,073.50, a significant $123 retreat from yesterday’s record high of $3,201.60.
Silver Suffers Heavier Losses Amid Trade Concerns
Silver, often more volatile than gold, recorded an even sharper drop. The most active May 2025 silver contract plummeted 7.73%, closing at $31.97 per ounce. The selloff was triggered by increased trade tensions following U.S. President Donald Trump’s sweeping tariff announcements, which spurred market uncertainty and investor panic.
Dollar Weakness Offers Mild Support
Despite the gold slump, the U.S. Dollar Index (DXY) also weakened significantly, falling 1.63% to 101.65. It briefly touched an intraday low of 100.975, its weakest level since October 2024. The softer dollar provided some cushion to gold prices, although the overall trend remained bearish due to liquidation pressure.
Trump’s Tariffs Spark Global Market Jitters
The sharp reversal in gold came in the wake of President Trump’s expanded import tariffs targeting major U.S. trade partners including Canada, China, and the European Union. These measures ignited fears of a global trade war, weighing heavily on equity markets and commodity sentiment.
“Gold trades a tad softer on the day after briefly hitting a fresh record high overnight,” said Ole Hansen, head of commodity strategy at Saxo Bank. “While supportive factors like inflation concerns and USD weakness remain, the current rush to deleverage amid spiking volatility will also be felt in gold.”
Equity Selloff Accelerates Gold Liquidation
The broader market meltdown intensified pressure on gold. The Dow Jones Industrial Average plunged 3.21%, losing 1,342.52 points to close at 40,435.23. The NASDAQ Composite dropped 2.53%, while the S&P 500 slumped 4.84%—its worst single-day performance in nearly five years.
Traders rushed to liquidate gold positions to meet margin calls and cover equity losses, intensifying downward pressure on the metal despite its traditionally safe-haven status.
📈 Outlook for Gold
Despite the recent pullback, gold’s long-term fundamentals remain strong. With ongoing trade tensions, geopolitical instability, and inflationary concerns, any stabilization in the market may attract fresh buying interest.
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