Gold price slips from record on improved risk sentiment
Gold prices slipped over 1% on Monday after touching a new record high earlier, as US President Donald Trump’s apparent tariff reprieve on consumer electronics improved the market’s risk appetite.Spot gold was down 1.1% to $3,201.63 per ounce by 10:30 a.m. ET, retreating from a peak of $3,245.36 set late Sunday evening. US gold futures declined 0.8% to $3,217.20 per ounce.Meanwhile, the US dollar continued to lose favour as it languishes near a three-year low against its rivals, offering support for gold.“Some risk-on trading here got us off the recent highs, but still the environment is pretty good for gold,” said Bart Melek, head of commodity strategies at TD Securities, in a Reuters note.Risk sentiment in wider financial markets ticked higher after Washington announced the exclusion of certain electronics like smartphones and computers from President Trump’s reciprocal tariffs.“Perhaps some relief on the tariff front, with the exemption of some electronics maybe taking some of the safe haven bid out,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.“However, ongoing uncertainty about trade and tariffs, weakness in the dollar and softer yields tend to be supportive for gold,” he added.Trump said on Sunday he would be announcing the tariff rate on imported semiconductors over the next week, keeping market participants on the edge.The trade war between the United States and China has rattled global markets and driven investors towards the safety of gold, which is traditionally viewed as a hedge against geopolitical and economic uncertainty.So far in 2025, the yellow metal has rise by more than 20% so far this year, making it one of the best-performing assets of the year. Propelling gold’s rally is an eroding appetite for American assets — stocks, bonds and the dollar — amid fears of a recession.Goldman Sachs remained most bullish among major banks on bullion, raising its year-end forecast to $3,700, citing stronger-than-expected central bank demand and heightened recession risks impacting ETF inflows.(With files from Reuters)Weiter zum vollständigen Artikel bei Mining.com
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