Gold, copper prices extend decline amid tariff aftershock
Gold extended its loss on Monday as the global markets sell-off continued, with the precious metal falling below the $3,000-an-ounce mark after setting that milestone three weeks ago.
Spot gold swung between $2,973.74 and 3,054.85 per ounce in what was a volatile session, and by 11:00 a.m. ET, it traded at $3,001.14 for a 1.2% intraday decline. Three-month US gold futures moved in a similar pattern and are trading at $3,020.10 per ounce.
Gold’s retreat comes just days after the metal hit a record high on haven demand amid growing geopolitical risks. Although bullion typically benefits from periods of upheaval, it can be sold during extreme market dislocation as investors seek to cover losses elsewhere.
The US stock market displayed heavy volatility on Monday, having swung between 4% decline to a 3% gain — the wildest intraday move since the pandemic bear market of 2020. The move came after a wild ride overnight that saw futures plunge and equities tumble around the globe.
“We are seeing profit taking to cover significant losses in equity markets and probably due to margin calls,” Vasu Menon, managing director of investment strategy at Oversea-Chinese Banking Corp., said in a text message to Bloomberg.
Still, gold remains one of the top-performing commodities in 2025 — up 15% year to date — setting many all-time highs along the way. It accumulated most of its gains after US President Donald Trump took office and unleashed waves of tariffs that upended global markets.
Copper continues decline
Copper followed a similar story to gold in the last two sessions, but the decline is more drastic.
The red-colored metal — often touted as a bellwether of the global economy — started Monday’s session down 7.7%, on track for its worst three-day performance since the great financial crisis. In London, three-month copper contracts traded at $8,780 a tonne, while those in New York are hovering around the $10,000 price point.
Some analysts said copper’s slump was triggered by a wave of investors cutting outstanding positions to minimize risks. There’s also speculation about China taking steps to counter economic headwinds, including accelerating stimulus to stabilize the economy, according to Bloomberg sources.
However, the collapse in copper prices has also led to traders to increase their positions, leading to a rally of nearly $1,000 in a little over two hours — the largest intraday move since 2009.
Copper prices had been surging until late March as threats of US tariffs on the metal fueled a rush to send supplies to America. But that trade unraveled following indications that the tariffs could begin sooner, while Trump’s “reciprocal” duties have prompted much larger fears around global demand.
Metals are “under significant pressure from dampened sentiment as the world braces for a possible recession and heightened geopolitical tensions that would threaten demand,” said Sabrin Chowdhury, head of commodities at BMI, a Fitch Solutions unit.
“The strong likelihood of a severe downturn in metals demand in a full-blown trade war will keep metal prices under pressure for the coming weeks.”
(With files from Bloomberg)