FX.co ★ Gold Prices Fall More than 2%

Gold prices reversed their previous gains, dropping approximately 2.5% to $3,020 per ounce on Friday. This decline marks a one-week low, further distancing the metal from the record highs achieved earlier in the week. Experts suggest that this drop results from investors liquidating gold holdings to offset losses in other asset classes prompted by margin calls. Meanwhile, the stock market experienced another significant decline amid escalating trade tensions. China's decision to impose a 34% tariff on all U.S. imports, a retaliatory move against President Trump's tariffs, has exacerbated concerns over global economic stability and increasing inflationary pressures. Despite the intensifying trade conflict, precious metals have so far remained unaffected by Trump's "reciprocal" tariffs. Concurrently, gold inventories in COMEX warehouses throughout the U.S. have seen a notable increase in recent months due to apprehensions that import tariffs could disrupt shipments. Despite the daily drop, gold remains up about 1% for the week, continuing a trend of weekly gains for the fifth consecutive week.