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Gold prices declined more than 1% on Monday, retreating from earlier record highs, as investor sentiment shifted towards riskier assets after the U.S. administration announced tariff exemptions for certain Chinese electronics. Spot gold fell 1.2% to $3,199.09 per ounce by 13:24 GMT, after reaching an all-time high of $3,245.42 earlier in the session. U.S. gold futures also dipped 0.9% to $3,215.70.
The improved risk appetite followed President Trump’s decision to exclude smartphones and computers from reciprocal tariffs on China, alleviating some trade tensions. However, uncertainty persists as Trump indicated plans to announce tariffs on imported semiconductors next week.
Supporting gold prices, the U.S. dollar weakened, approaching a three-year low against major currencies, enhancing gold’s appeal as a hedge against currency depreciation.
Gold’s recent pullback reflects a temporary shift in market sentiment towards riskier assets amid easing trade tensions. However, ongoing geopolitical uncertainties and potential new tariffs could reignite demand for safe-haven assets. Investors should monitor developments in U.S.-China trade relations and currency fluctuations, as these factors will continue to influence gold’s trajectory.
