March 2, 2025
Gold has continued to decline, heading towards its lowest levels in the last 20 days, reaching $2,860 per ounce in spot trading, the losses coincided with a recovery in the dollar, boosted by escalating trade tensions between the United States on the one side, and China, Canada and Mexico on the other side.
The deep losses in the US stock market yesterday probably played a role in forcing traders to liquidate their positions in other assets to cover their positions.
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As monitored on Marketforces Africa, it was also witnessed that the momentum of money flowing into physical gold funds on Wall Street is running out of steam after the huge inflows in recent days and turning backward, which contributed to fueling the downward pressure on gold.
Between February 18 and 25, the largest gold ETFs, SPDR Gold Trust (GLD) and iShares Gold Trust (IAU), recorded a total of nearly $5 billion in inflows before reversing to outflows of nearly $160 million in the past two sessions.
