Gold Tumbles Over 1% as Tariff Uncertainty and Peace Talks Weigh on Prices

Gold experienced a significant decline of 1.4% on Monday, falling to $3,350.94 per ounce after reaching recent highs above $3,400. The drop came as markets unwound their initial reaction to reports of U.S. tariffs on 1 kg gold bullion imports, with the White House promising to clarify its stance through an executive order.

Additionally, easing geopolitical tensions due to expectations of a potential Ukraine-Russia peace deal have reduced safe-haven demand for gold. Investors are now focused on Tuesday’s consumer price index data, which could strengthen the case for Federal Reserve rate cuts if inflation comes in lower than expected, potentially pushing gold back above the $3,400 psychological level.