04.04.202518:40:00UTC+00Gold Extends Yesterday's Substantial Pullback

While gold is often seen as a safe haven during times of turmoil, the price of the precious metal showed another substantial move to the downside on Friday amid an extended sell-off by markets around the world.

Gold for April delivery plunged $85 or 2.7 percent to $3,012 an ounce after tumbling $42.90 or 1.4 percent to $3,097 an ounce, recording the biggest two day-dollar decline since April 15, 2013.

With the steep drop over the past two days, the price of gold pulled back well off its record highs and dove by 2.4 percent for the week.

The extended slump by gold came amid a wider sell-off amid ongoing concerns about a global trade war after China announced retaliatory tariffs on U.S. goods in reaction to President Donald Trump's new levies.

China's finance ministry announced a 34 percent tariff will be imposed on all imported goods originating from the U.S. beginning on April 10th.

The new tariff matches the "reciprocal tariff" Trump plans to impose on China, although the country will face a 54 percent effective rate when the new levies are combined with existing duties.

The ministry called Trump's tariff plan a "typical unilateral bullying practice" that is "inconsistent with international trade rules."

"China urges the United States to immediately cancel its unilateral tariff measures and resolve trade differences through consultation in an equal, respectful and mutually beneficial manner," the ministry said, according to a Google translation.

Responding to the news in a post on Truth Social, Trump argued China "played it wrong" and "panicked," calling the move "the one thing they cannot afford to do."

Canada and the European Union are also purportedly preparing countermeasures, leading to concerns about a trade war that could fuel inflation and damage the global economy.