Gold prices fell for a third consecutive session on Monday, as market participants reacted to escalating trade tensions and a stronger U.S. Dollar. The most active June gold futures contract dropped by $57.30 (-1.87%), closing just under the crucial $3,000 level at $2,998.80 per ounce.
The selling pressure was fueled by multiple factors, including President Trump’s latest tariff announcements, a firming U.S. Dollar, and rising U.S. Treasury yields. The U.S. Dollar Index climbed 0.52% to 103.22, marking its second straight day of gains, further dampening gold’s appeal as a safe-haven asset.
In contrast, silver prices rebounded despite early volatility. May silver futures opened at $29.23, dropped to an intraday low of $27.545, but later rallied to settle at $29.605, gaining 1.28% on the day. Silver’s stronger response was attributed to renewed strength in equity markets, which offered temporary relief from the broader risk-off sentiment.
Global equities continued to show strain, particularly in Asia, where the Hang Seng Index plummeted 13%. European markets mirrored the bearish tone, but U.S. stocks showed signs of resilience. After suffering deep losses on Friday (Dow -3.21%, NASDAQ -2.53%, S&P 500 -4.84%), Monday’s session brought relative stabilization, with the S&P 500 closing just 0.23% lower and the NASDAQ managing a 0.10% gain.
Market analysts are now drawing comparisons to Black Monday of 1987, warning that if trade diplomacy fails, the risk of a sharp, prolonged market crash could become more realistic. Heightened fears of a global recession and retaliatory tariffs have only added to investor anxiety.
Gold’s failure to hold above the $3,000 psychological level indicates a recalibration of investor risk appetite. As tariff tensions deepen and currency markets remain volatile, traders are closely watching how global policymakers respond. Comparisons to past economic disasters, including the Smoot-Hawley Tariff Act, further highlight the stakes at hand.
📉 Key Takeaway: Gold is under pressure due to rising U.S. yields and a stronger dollar. With geopolitical and economic risks mounting, volatility is expected to remain high across both precious metals and global equity markets.
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