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Gold prices ease from record highs as Trump grants tariff exemptions

Published: 14 Apr. 2025, 13:24

A view of a Krugerrand coin and gold bars kept in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany on Jan. 10. [REUTERS/YONHAP]

Gold prices retreated on Monday from a record high hit earlier in the session as trade tensions eased after U.S. President Donald Trump exempted smartphones and computers from “reciprocal” U.S. tariffs.

Spot gold was down 0.1 percent at $3,232.45 an ounce. Bullion hit a record high of $3,245.42 earlier in the day.

U.S. gold futures edged 0.1 percent higher to $3,248.20.

“Softer U.S. dollar has been assisting gold, but news of tech product tariff exemptions lifted risk appetite and caused safe-haven demand to ease. This has caused gold to lack clear direction,” said KCM Trade chief market analyst Tim Waterer.

The White House announced the exclusions from steep reciprocal tariffs on Friday. However, Trump bore down on Sunday on his administration's latest message that the exclusion of smartphones and computers from his reciprocal tariffs on China will be short-lived.

“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.

Non-yielding gold is traditionally viewed as a hedge against economic uncertainty and inflation.

Gold prices vaulted on Friday over the $3,200-per-ounce mark for the first time as intensifying U.S.-China trade tensions rattled global markets.

Goldman Sachs raised its end-2025 gold price forecast to $3,700 per ounce from $3,300, citing stronger-than-expected central bank demand and boosted ETF inflows.

Traders see around 80 basis points worth of cuts by the end of 2025.

Bullion tends to thrive in a low-interest-rate environment.

Elsewhere, price premium for gold in top consumer China widened last week due to consumers and investors seeking refuge from the country's escalating trade war with the United States, analysts said.

Spot silver lost over 1 percent to $31.91 an ounce, while platinum added 0.6% to $948.45 and palladium gained 0.8 percent to $922.98.

Reuters