Gold falls over 2% in worst day since May

Gold bars

Gold prices fell on Monday, pressured by profit-taking and a stronger dollar, after US President Donald Trump denied plans to impose tariffs on imports of the precious metal.

December gold futures settled 2.5%, or $86.6, lower at $3,404.7 an ounce, marking the sharpest daily drop since May 12, after hitting a record high of $3,534.1 on Friday.

The dollar index, which measures the US currency against a basket of six major peers, rose 3.5% to 98.53 at 10:10 p.m. in Mecca, adding further pressure on dollar-priced commodities.

Media reports on Friday had said US Customs would impose tariffs on some of the most-traded bullion, but the White House later said it planned to issue a clarification on misinformation about the matter.

Trump said in a brief post on his Truth Social account on Monday, “Gold will not be Tariffed!”

Investors now await US inflation data due on Tuesday, with forecasts pointing to a 0.3% month-on-month rise in core consumer prices and a 3% year-on-year increase.