Gold Pulls Back from Record High As US Tech Tariff Exemptions Ease Trade Tensions

Spot gold dipped 0.1% to $3,232.49 per ounce by 0702 GMT, after hitting an all-time high of $3,245.42 earlier in the session.

US gold futures rose 0.1% to $3,248.30.

“A softer US dollar has been assisting gold, but news of tech product tariff exemptions lifted risk appetite and caused safe-haven demand to ease,” said Tim Waterer, chief market analyst at KCM Trade.

“This has caused gold to lack clear direction,” he added.

The White House announced on Friday that certain items would be excluded from steep reciprocal tariffs.

However, President Trump emphasized on Sunday that the exemptions for smartphones and computers would be temporary.

“Ongoing trade and tariff dramas have created higher volatility and uncertainty levels in financial markets, and in such an environment the gold price could be eyeing off a run towards $3,300 in the near-term should dollar weakness persist,” Waterer said.

Gold, which yields no interest, is typically considered a hedge against inflation and economic instability.

On Friday, gold prices surged past $3,200 per ounce for the first time amid escalating US-China trade tensions.

Goldman Sachs raised its end-2025 forecast for gold to $3,700 per ounce from $3,300, citing stronger-than-anticipated demand from central banks and increased inflows into exchange-traded funds.

Markets are pricing in roughly 80 basis points of rate cuts by the end of 2025.

Bullion generally performs well in a low interest rate environment.

In top consumer China, the price premium for gold widened last week as investors and consumers sought safety from the country’s deepening trade dispute with the United States, according to analysts.

Among other precious metals, spot silver dropped 0.6% to $32.06 per ounce.

Platinum gained 1% to $952.50, while palladium rose 1.3% to $927.25.