Gold prices witnessed a pullback on Monday after reaching a record peak earlier in the session, as trade tensions relaxed following U.S. President Donald Trump’s decision to exempt smartphones and computers from “reciprocal” U.S. tariffs.
In Dubai, gold rates achieved remarkable gains, with 24-carat gold rising by AED3.25 to AED390, and 22-carat gold increasing by AED3.25 to AED361. Furthermore, 21-carat gold climbed to AED343.25, while 18-carat gold edged up to AED297.
Spot gold prices decline slightly
As of 03:29 GMT, spot gold was down by 0.1 percent at $3,232.45 per ounce. Earlier in the day, bullion had reached a record high of $3,245.42. U.S. gold futures inched up by 0.1 percent 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,” reported Reuters, citing KCM Trade chief market analyst Tim Waterer.
U.S. tariff exclusions announced
On Friday, the White House announced exclusions from steep reciprocal tariffs. However, Trump reiterated on Sunday that the exemption for smartphones and computers 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 noted. Non-yielding gold is traditionally seen as a hedge against economic uncertainty and inflation.
Read more: Dubai gold prices surge AED7.5 as global rates surpass $3,200
Surge in gold prices amid trade tensions
Gold prices surged past the $3,200-per-ounce mark for the first time on Friday, driven by escalating U.S.-China trade tensions that unsettled global markets. Goldman Sachs has increased its end-2025 gold price forecast to $3,700 per ounce from $3,300, citing stronger-than-expected demand from central banks and increased ETF inflows. Traders anticipate around 80 basis points worth of cuts by the end of 2025, as bullion often thrives in a low-interest-rate environment.
Price premiums and market trends
In other developments, the price premium for gold in top consumer China widened last week as consumers and investors sought refuge from the escalating trade war with the United States, analysts reported. Meanwhile, spot silver fell by over 1 percent to $31.91 per ounce, while platinum rose by 0.6 percent to $948.45 and palladium gained 0.8 percent to $922.98.
