Gold Slides - Safe Haven No More? Investors Dump Amid Global Economic Fears

Gold Slides - Safe Haven No More? Investors Dump Amid Global Economic Fears

Gold and copper prices opened sharply lower on Monday (April 7, 2025), as global asset markets witnessed a wave of sell-offs. The latest round of import tariffs announced by U.S. President Donald Trump has intensified global economic tensions, shaking investor confidence across the board.

📉 Spot gold, which recently hit all-time highs, dropped 0.7% to $3,015.85 per ounce in early Asian trading.
Copper futures plunged 8.5% to $4.1785 per pound, reflecting mounting concerns over weakening global demand amid retaliatory trade measures, particularly from China.

📊 The Bloomberg Commodity Index declined 5.8%, marking its worst week since 2022.

💬 Analysts warn that while gold is typically seen as a “safe haven” during times of uncertainty, extreme market turmoil can force investors to liquidate their positions in gold to cover losses in riskier assets like equities and crypto.
Previously, copper had surged on fears that Trump’s tariffs would choke global supply. But with escalating trade wars and heavy selling across metals and commodities, market sentiment has quickly turned bearish.

🌐 The latest developments suggest that lingering trade war uncertainty may continue to weigh on global markets in the medium to long term.