Gold prices dipped slightly on Monday after hitting a record high earlier in the session. The retreat came as U.S. President Donald Trump announced temporary tariff exemptions on smartphones and computers, reducing investor demand for safe-haven assets.
KCM Trade analyst Tim Waterer noted that a weaker U.S. dollar supported gold, but easing trade tensions dampened demand.
Despite the temporary exemption, Trump warned it may be short-lived, maintaining uncertainty around U.S.-China trade relations. Continued tensions could drive gold toward $3,300 if the dollar weakens further.
Gold, which offers no yield, benefits in times of low interest rates and economic uncertainty. Traders see around 80 basis points worth of cuts by 2025 end. Spot gold jumped past $3,200 on Friday amid escalating trade fears.
In China, gold premiums widened as consumers sought safety from the trade conflict. Goldman Sachs raised its year-end gold forecast to $3,700 per ounce, citing strong central bank buying and recession risks. The bank sees upside potential, with prices possibly hitting $3,880 if recession fears materialize and ETF demand rises. If the economy surprises positively, prices may end closer to $3,550.
Gold has gained over 23% this year, hitting multiple records amid ongoing market volatility.