Gold prices dipped to approximately $3,220 per ounce on Monday, pulling back from its peak record levels. This decline was influenced by a reduction in trade tensions following President Donald Trump's decision to exempt electronic products—primarily sourced from China—from tariffs. Despite this temporary reprieve, Commerce Secretary Howard Lutnick indicated on Sunday that these items, along with semiconductors, would soon be subjected to new duties within the coming two months. This announcement has added to the prevailing uncertainty surrounding the administration's trade policy.
Just last week, gold reached a historic high of $3,245 per ounce, fueled by a surge in safe-haven buying. This spike occurred against the backdrop of escalating trade conflicts between the United States and China. In response to Trump's decision to impose a 145% tariff on Chinese goods, China retaliated on Friday by raising tariffs on U.S. imports to 125%, effective as of Saturday.
Investors are now keenly awaiting Federal Reserve Chair Jerome Powell’s upcoming speech on Wednesday, hoping for insights into potential interest rate adjustments.
