Gold prices fall from record highs as Trump grants tariff exemptions
Gold could be eyeing a run towards $3,300 in the near term should dollar weakness persist
14 April 2025 - 09:41
byRahul Paswan
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Gold prices retreated on Monday from a record high hit earlier in the session as trade tension eased after US President Donald Trump exempted smartphones and computers from “reciprocal” US tariffs.
Spot gold was down 0.1% at $3,232.45/oz, as of 3.29 GMT. Bullion hit a record high of $3,245.42/oz earlier in the day.
US gold futures edged 0.1% higher to $3,248.20.
“The softer US 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.
Nonyielding gold is traditionally viewed as a hedge against economic uncertainty and inflation.
Gold prices vaulted on Friday over the $3,200/oz mark for the first time as intensifying US-China trade tensions rattled global markets.
Goldman Sachs raised its end-2025 gold price forecast to $3,700/oz from $3,300, citing stronger-than-expected central bank demand and boosted ETF inflows.
Traders expect about 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 US, analysts said.
Spot silver lost over 1% to $31.91/oz, while platinum added 0.6% to $948.45/oz and palladium gained 0.8% to $922.98/oz.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Gold prices fall from record highs as Trump grants tariff exemptions
Gold could be eyeing a run towards $3,300 in the near term should dollar weakness persist
Image: Reuters
Gold prices retreated on Monday from a record high hit earlier in the session as trade tension eased after US President Donald Trump exempted smartphones and computers from “reciprocal” US tariffs.
Spot gold was down 0.1% at $3,232.45/oz, as of 3.29 GMT. Bullion hit a record high of $3,245.42/oz earlier in the day.
US gold futures edged 0.1% higher to $3,248.20.
“The softer US 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.
Nonyielding gold is traditionally viewed as a hedge against economic uncertainty and inflation.
Gold prices vaulted on Friday over the $3,200/oz mark for the first time as intensifying US-China trade tensions rattled global markets.
Goldman Sachs raised its end-2025 gold price forecast to $3,700/oz from $3,300, citing stronger-than-expected central bank demand and boosted ETF inflows.
Traders expect about 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 US, analysts said.
Spot silver lost over 1% to $31.91/oz, while platinum added 0.6% to $948.45/oz and palladium gained 0.8% to $922.98/oz.
Reuters
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