Gold (XAU) price retreats as the week begins, down 0.70% and falls below the $2,900 figure as investors' fears of a recession in the United States (US) grow amid controversial trade policies implemented by the US President Donald Trump.
At the time of writing, the XAU/USD pair trades at $2,890 after hitting a daily high of $2,918.
Wall Street continued to edge lower, depicting a dismal market sentiment due to the ongoing economic slowdown.
On Friday, Trump appeared in an interview and said, "There is a period of transition, because what we're doing is very big. …We're bringing wealth back to America. …That's a big thing, and there are always periods; it takes a little time."
In the meantime, Gold traders booked profits amid concerns that the US economy is facing the challenges of a stagflationary scenario. Recent data suggests the economy is slowing down sharply.
The Atlanta Fed GDP Now model predicts the first quarter of 2025 at -2.4%, which would be the first negative print since the COVID-19 pandemic.
Source: FXStreet
