Gold prices fell today, Monday, to their lowest level in more than 3 weeks, continuing to decline in light of investors in extensive sales of the precious metal to cover losses in other transactions, amid fears of global recession due to the escalation of the trade war.
Gold in instant transactions fell 0.4% to $ 3024.6 an ounce by 09:47 GMT. It fell earlier in the session by more than 1% to reach its lowest level since last March 13.
US gold futures rose 0.3% to $ 3045.
Gold fell more than 3% on Friday, after the customs duties imposed by US President Donald Trump, which came more than expected – caused a wave of turmoil in global markets.
China has responded with a series of counter -procedures that included imposing 34% additional fees on all American goods and restrictions on the export of some rare minerals.
“There is a lot of confusion and blurry in the markets about whether there is room to reduce the escalation in the future, given that tension is now at its peak, and many still find it difficult to see any quick solution at the present time,” said Di -market expert Yib John Rong.
The decline in gold – which is usually a safe haven in blurring times – has pushed the dealers to specifying that investors may sell yellow metal to achieve profits and perhaps to cover the losses or calls of other assets margin.
Fears of a global recession led to American stocks lost approximately $ 6 trillion of their value last week, and that the Japanese Nikki index lands about 9% today, Monday.
Meanwhile, the Chinese Central Bank strengthened its gold reserves in March for the fifth month in a row.
“It is clear that central banks are still keen to add gold to their reserves, which supports precious metals,” said Tim Water, market analysts at the company “DKC CM”, explaining that gold will remain preferred by the central banks, and added, “The demand for purchase may help keep the gold path bullish.”
Oil continues the losses
Oil prices continued the losses that they incurred last week with the US West Texas Intermediate Crude by about 4% due to fears of an economic stagnation that could reduce the demand for crude as a result of the escalation of trade tension between the United States and China.
Brent crude futures fell 3.5%, to $ 63.3 a barrel by 09:52 GMT.
US West Texas Intermediate Futures Futures fell 3.7%, to $ 59.7.
The crude descended to the lowest level since April 2021.
Oil decreased 7% on Friday, with China increasing customs duties on American goods, which led to an escalation of a trade war that prompted investors to increase expectations that there was a state of recession.
During the past week, Brent fell 10.9% while West Texas crude fell 10.6%.
“It is difficult to see a ground oil unless panic in the markets, and it is difficult to see this unless (US President Donald) Trump says something to calm the escalating concerns about the outbreak of a global trade war and slip into stagnation,” said Vandana Harry, Fanda Insights, to analyze the oil market -.
The head of the Federal Reserve (US Central Bank) Jerome Powell said on Friday that the new customs duties imposed by Trump “are greater than expected” and are likely to be economic repercussions, including high inflation and slowdown, as well.
What increased the pressure on prices by landing, the decision of the OPEC Plus coalition to move forward in plans to increase production by 411 thousand barrels per day in May, which constitutes an increase of 135 thousand barrels per day before.
The ministers of the OPEC Plus group stressed at the beginning of the week the need to fully adhere to the goals of oil production and called on members whose production has increased to the extent to the provision of plans by April 15 to compensate for the surplus production.
