Gold prices fell from a record high on Monday as risk appetite improved marginally on the U.S. flagging some exemptions from steep trade tariffs against China, although sentiment still remained largely on edge. 

Weakness in the dollar and Treasury prices also kept gold relatively underpinned and trading above $3,200 an ounce, as did some comments on monetary easing from the Federal Reserve.

Spot gold fell 0.3% to $3,225.79/oz, while gold futures expiring in June fell 0.1% to $3,240.87/oz by 01:12 ET (05:12 GMT). Spot gold remained close to a record high of $3,245.69/oz hit last week. 

Gold pressured by brief tariff relief as risk appetite recovers 

Losses in gold came amid gains in risk-driven markets, with Asian stocks mostly rallying on Monday. U.S. stock index futures also rose in Asian trade.

Risk appetite improved after the White House over the weekend confirmed that electronic goods will not be included in President Donald Trump’s staggering 145% tariffs against China. The move offers some relief to major U.S. firms with heavy import exposure to China, especially Apple Inc (NASDAQ:AAPL). 

But Trump downplayed this notion, stating that electronic imports will still face a 20% levy, and that he was preparing to announce separate import tariffs on electronics soon. 

Trump’s comments kept investors on edge over more tariffs, especially as China and the U.S. engaged in a bitter tariff exchange last week. 

Beijing announced 125% retaliatory tariffs against the U.S. over Trump’s latest move, and showed little intent to back down. China was also seen reaching out to other trading partners to improve bilateral trade.

Still, a dire trade war between the world’s biggest economies is expected to rattle global supply chains and economic growth, with traders seen pricing in at least a 50% chance of a U.S. recession this year. 

This notion had boosted gold prices in recent weeks, while most other metals lagged. Still, weakness in the dollar offered some relief to metal markets on Monday. 

Platinum futures rose 0.8% to $951.90/oz, while silver futures fell 0.3% to $31.827/oz. 

Among industrial metals, copper futures on the London Metal Exchange steadied at $9,152.90 a ton. 

Goldman Sachs hikes 2025 gold price target to $3,700/oz

Goldman Sachs Group Inc (NYSE:GS) on Sunday hiked its 2025 gold price target to $3,700/oz from $3,300/oz- its third such increase this year. 

The investment bank flagged heightened safe haven demand for bullion in the face of a bitter U.S.-China trade war, and said that in an extreme scenario, gold could surge as high as $4,500/oz by end-2025. 

Goldman Sachs also said that gold was a hedge against increased risks of a U.S. recession.