Gold price down over 2% as safe-haven metal falls victim to market selloff
Gold slumped more than 2% on Friday as the metal fell victim to the global markets sell-off following US President Donald Trump’s new round of tariffs that turned out to be more aggressive than expected.
Spot gold fell 2.2% to $3,044.28 per ounce by 10:40 a.m. ET, erasing all of its gains for the week despite setting a new all-time high just two sessions ago. US gold futures lost 1.7% to trade at $3,068.70 per ounce.
Gold’s drop comes after the global stock market endured of one of their worst days since the height of the pandemic, with about $2.5 trillion erased from the S&P 500 alone.
While bullion is typically seen as a safe haven during economic uncertainty, it can also join pronounced selloffs as investors are forced to raise cash to offset losses in other assets.
Despite the jolt caused by the levies, gold — which has already surged by nearly 20% this year — stands to benefit further from an increasingly volatile macroeconomic and geopolitical environment, according to many banks and analysts.
This week, HSBC joined the likes of Goldman Sachs and Bank of America in raising its price target for the yellow metal, citing the trend of robust central bank buying in recent years.
“Steep and sustained corrections below $3,000/oz., say to near or below $2,700/oz., could trigger speculative liquidation but also revive physical demand and encourage central bank purchases,” it said.
The London-based bank also noted that a stronger US dollar in late 2025 could limit gold’s gains, especially since last year’s runs were based on expected rate cuts that may not materialize.
(With files from Bloomberg)