Gold Reaches $3,000 While Stocks Notch Worst Week Since 2023
Last week, stocks tumbled while bullion posted weekly gains amid ongoing trade-war concerns. This week, investor sentiment was again driven by tariff woes, with the key focus on Wednesday’s release of U.S. consumer inflation data.
The market sell-off extended into Monday as worries over the economic impact of escalating tariffs fueled a risk-off sentiment among investors. The Nasdaq Composite led the downturn, plunging 4%—its worst single-day drop in over two years. Meanwhile, gold dipped slightly by 0.4% as profit-taking weighed on metals. However, losses were contained, with gold and silver closing Monday at $2,901 and $32.39, respectively.
On Tuesday, markets reacted sharply to President Trump’s remarks suggesting the U.S. might double tariffs on steel and aluminum imports from Canada. Wall Street averages swung wildly before ultimately closing lower. In contrast, gold found support from safe-haven inflows and a weaker dollar, ending the session slightly higher at $2,916.
Wednesday’s much-anticipated inflation report from the Labor Department showed consumer prices rose 0.2% in February, falling short of the expected 0.3% increase. The softer-than-expected data boosted expectations for rate cuts, propelling gold 0.89% higher to $2,942. Wall Street welcomed the inflation news, with major indexes snapping their two-day losing streak and closing slightly higher.
However, investor sentiment reversed course on Thursday after another tariff bombshell—President Trump announced a potential 200% tariff on European alcohol products in retaliation for the EU’s 50% tariffs. The renewed tariff concerns pushed the S&P 500 into correction territory.
Gold, on the other hand, surged on safe-haven demand and rising hopes for rate cuts. By Thursday’s close, gold hit a record high of $2,988, while silver gained 1%, finishing at $33.90.
This morning, gold briefly surpassed the key psychological threshold of $3,000 for the first time before retreating slightly. Ultimately, the metal ended the week up 2.5% at $2,983 per ounce, while silver posted a 1.3% gain, closing at $33.75.
Stocks attempted a comeback Friday morning, lifted by a tech rally in Tesla, Nvidia, and Apple. Despite the rebound, U.S. equities still ended the week in the red. After a 650-point surge in early trading, the Dow logged a 2.3% weekly loss—its worst since 2023. Meanwhile, the S&P 500 shed 1.17%, and the Nasdaq closed 0.48% lower for the week.