In a significant market movement, gold prices tumbled over 1% on Monday, caught in a broader global sell-off driven by escalating economic concerns. Spot gold experienced a sharp decline, falling as much as 3.2% to $2,365.55 per ounce, marking its largest single-day drop since early June. Meanwhile, U.S. gold futures dropped by 1.0% to $2,445.10 per ounce in New York, though they managed to stay above the crucial $2,400 level throughout the trading session.

Last week, gold and silver prices exhibited notable volatility, showing gains in international markets. Gold prices soared to a lifetime high fueled by hopes for Federal Reserve rate cuts and disappointing U.S. job data. Silver mirrored this trend, surpassing $28.50 per troy ounce. However, both precious metals struggled to maintain these highs, with prices declining after weaker-than-expected U.S. job reports and factory orders data, which intensified recession fears.

Bullion, often seen as a safe haven against geopolitical and economic uncertainties, generally performs well when interest rates are low. Despite this, rising concerns about a potential recession have led to a downturn in prices for gold and other precious metals.

The recent decline underscores the fragility of the global economy and the complex interplay between market expectations and economic indicators. As investors navigate these turbulent times, the precious metals market remains a focal point of uncertainty and opportunity.