Gold prices, which recently hit record highs above $3,000 per ounce, have fallen below this threshold for the first time in weeks. As of April 7, gold futures are trading at $2,997.6 per ounce, marking a 1.2% drop from the previous close. Copper prices also experienced significant declines, falling by 7.7% on the London Metal Exchange (LME), the largest single-day drop in five years. Nickel and iron ore prices followed suit, with nickel down 5.5% to $13,945 per tonne and iron ore hitting a three-month low at $97 per tonne. The sell-off reflects mounting concerns over tariffs and recession risks.
The recent volatility comes amid U.S. President Donald Trump’s announcement of sweeping tariffs on imports, which has disrupted global trade dynamics. While gold typically serves as a safe-haven asset during periods of uncertainty, analysts attribute the recent price correction to profit-taking following its substantial rally earlier this year. Central banks have been significant buyers of gold in 2025, contributing to its 14% year-to-date rise. However, recession fears and declining demand have now overshadowed these bullish factors. Gold had earlier reached an all-time high of $3,167 per ounce on April 2.
Copper’s sharp decline is linked to China’s retaliatory tariffs of 34% on U.S. imports, set to take effect on April 10. The escalation in trade tensions has raised concerns about demand destruction for industrial metals like copper, which are vital for infrastructure and manufacturing. Analysts predict copper prices could fall further as global growth expectations weaken.
Despite the turbulence, some experts remain optimistic about gold’s long-term prospects due to continued central bank purchases and its role as a hedge against inflation and geopolitical risks. However, metals markets face near-term headwinds as investors reassess risk exposure amid heightened uncertainty.
