Gold dips as Trump eases trade tensions with tariff exemptions
[BENGALURU] Gold prices dropped on Monday (Apr 14) as US President Donald Trump eased trade tensions by granting tariff exemptions on smartphones, computers and other electronics primarily imported from China.
Spot gold was down 0.4 per cent at US$3,223.67 an ounce, as at 0036 GMT. Bullion hit a record high of US$3,245.28 in the previous session.
US gold futures eased 0.1 per cent to US$3,240.90.
On Friday, gold prices vaulted over the US$3,200-per-ounce mark for the first time as intensifying U.S.-China trade tensions rattled global markets.
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.
US monthly producer prices unexpectedly fell 0.4 per cent in March, but tariffs on imports are expected to accelerate inflation in the coming months.
Traders see around 80 basis points worth of cuts by the end of 2025.
Non-yielding gold, a traditional hedge against global uncertainties and inflation, also tends to thrive in a low-interest-rate environment.
Elsewhere, price premium for gold in top consumer China above global benchmark spot prices widened last week due to consumers and investors seeking refuge from the country’s escalating trade war with the United States, analysts said.
Spot silver lost 0.7 per cent to US$32.04 an ounce, while platinum added 0.7 per cent to US$949.25 and palladium gained 0.7 per cent to US$922.25. REUTERS
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