Gold drops 3%, snaps 4-week winning streak

Gold bars

Gold prices fell on Friday as investors sold off the yellow metal to cover losses in other assets, amid growing fears of a global recession driven by escalating trade tensions.

June gold futures dropped 2.75%, or $86.30, to $3,035.40 per ounce. This decline ended a four-week streak of gains, with gold posting a 2.55% weekly loss.

Meanwhile, the US dollar index—which tracks the greenback against six major currencies—rose 0.85% to 102.93 points at 10:50 pm Makkah time.

President Donald Trump's new tariffs are "larger than expected," and the economic fallout including higher inflation and slower growth likely will be as well, Federal Reserve Chair Jerome Powell said on Friday.

The US economy added 228,000 jobs in March, a rise of 4.2%, according to data released on April 4, by the Department of Labor.