Gold Prices Plunge as Investors Sell to Cover Stock Losses

📰 Gold Prices Plunge as Investors Sell to Cover Stock Losses

April 5, 2025 – Global gold prices tumbled more than 3% on Friday as investors sold off the precious metal to cover losses from a steep decline in stock markets, driven by escalating trade tensions.
Spot gold fell 2.9% to $3,024.20 per ounce at 1:44 p.m. ET (17:44 GMT), having hit a session low of $3,015.29, just a day after reaching a record high of $3,167.57 on Thursday.
U.S. Gold Futures closed down 2.8% at $3,035.40 per ounce.

The selloff was sparked by global equity losses, with the S&P 500 and Nasdaq Composite falling nearly 5% after China announced a 34% tariff on all U.S. goods starting April 10, in retaliation for tariffs announced by President Donald Trump earlier in the week.
Suki Cooper, an analyst at Standard Chartered, commented: “Gold is a liquid asset often used to meet margin calls elsewhere—it's not uncommon for gold to be sold during high-risk events.”

Despite this week's downturn, gold remains up about 15.3% in 2025, supported by strong central bank buying and its appeal as a safe-haven asset amid economic and geopolitical uncertainty.
The U.S. dollar index (DXY) rose 0.7%, making gold more expensive for international buyers.

Other precious metals also dropped:
- Silver fell 7.3% to $29.54/oz
- Platinum dropped 3.6% to $918.35/oz
- Palladium declined 2% to $909.75/oz