Gold prices experienced a sharp pullback of over 1% on Monday after touching a new record high earlier in the session. The decline came as investor sentiment shifted toward riskier assets, following a move by the U.S. administration to exempt smartphones and computers from recently announced tariffs on Chinese imports.
As of 09:24 a.m. ET (1324 GMT), spot gold was trading at $3,199.09 per ounce, down 1.2% from its all-time peak of $3,245.42 hit earlier in the day. Meanwhile, U.S. gold futures saw a 0.9% drop to $3,215.70 per ounce.
The broader financial markets responded positively to the White House’s decision to exclude key electronic devices from reciprocal tariffs, easing some of the geopolitical tensions that had previously fueled demand for safe-haven assets like gold.
Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals, noted that the temporary tariff relief may have reduced the urgency for safe-haven buying. However, he also emphasized that lingering uncertainties over global trade policies, along with a weaker U.S. dollar and lower bond yields, continue to support the longer-term outlook for gold.
Adding to the market’s cautious tone, President Trump mentioned plans to unveil new tariff rates on semiconductor imports in the coming week, keeping traders alert to further developments in the ongoing U.S.-China trade conflict.
Despite the day’s dip, the long-term bullish sentiment for gold remains intact. Goldman Sachs recently raised its year-end target for the precious metal to $3,700 per ounce, citing growing demand from central banks and increased ETF inflows amid rising recession concerns.
In other precious metals, spot silver slid 1.1% to $31.91 per ounce. Platinum edged higher by 0.5% to $947.05, while palladium saw a strong gain of 3.4% to reach $946.36.
Tags:
Leave A Comment