Gold and silver markets opened the week under pressure as global economic uncertainties weighed on investor sentiment. Spot gold fell 0.3% to $3,027.90 per ounce early Monday, marking its lowest level in over three weeks. The decline was driven by profit-taking and the need for liquidity as investors sought to cover losses in other asset classes amid fears of a global recession fueled by escalating trade tensions. U.S. President Donald Trump continues to double down on his aggressive tariff measures, showing no signs of easing the pressure on global trade, which has added to market volatility. Gold has retreated from last week’s record high of $3,167.88 per ounce, though safe-haven demand continues to provide some support for prices as investors brace for prolonged uncertainty. Meanwhile, the Federal Reserve has signaled it will not flinch in its current monetary policy stance, maintaining higher interest rates despite growing concerns about economic slowdown.
Silver also faced downward pressure, dropping 4.4% to $32.54 per ounce, its lowest in nearly a month. The metal’s dual role as both a precious and industrial commodity makes it particularly sensitive to economic uncertainty, with industrial demand concerns compounding the impact of Trump’s ongoing tariff announcements. With no resolution in sight for trade tensions and the Fed holding firm on its hawkish approach, silver’s struggles are likely to persist until there is greater clarity on global economic conditions. Analysts suggest that silver’s current weakness may continue in the near term, though steady demand from exchange-traded funds could help stabilize prices. Investors remain cautious as both metals reflect broader anxieties about the state of the global economy and policy outlooks.
