Gold falls more than 1% as risk sentiment improves
Gold prices dipped more than 1% on Monday, retreating from a record high hit earlier in the day, as risk appetite improved after the White House exempted smartphones and computers from reciprocal tariffs on China.
Spot gold was down 1.2% at $3,199.09 an ounce, as of 09:24 a.m. ET (1324 GMT), after hitting an all-time high of $3,245.42. U.S. gold futures fell 0.9% to $3,215.70.
"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.
Risk sentiment in wider financial markets ticked higher after Washington announced the exclusion of certain electronics like smartphones and computers from President Donald 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."
Trump said on Sunday he would be announcing the tariff rate on imported semiconductors over the next week, keeping market participants on the edge.
Supporting gold, the dollar was languishing near a three-year low against its rivals.
The trade war between the United States and China has rattled global markets and driven investors into the metal, which is traditionally viewed as a hedge against geopolitical and economic uncertainty.
Goldman Sachs remained most bullish among major banks on gold, raising its year-end forecast to $3,700, citing stronger-than-expected central bank demand and heightened recession risks impacting ETF inflows.
Elsewhere, spot silver slipped 1.1% to $31.91 an ounce, while platinum gained 0.5% to $947.05. Palladium rose 3.4% to $946.36.
(Reporting by Brijesh Patel, Ishaan Arora and Anmol Choubey in Bengaluru; Editing by Emelia Sithole-Matarise)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arabian Post
14 minutes ago
- Arabian Post
Gemini Quietly Advances Toward Public Listing Amid Regulatory Shift
Cryptocurrency exchange Gemini, co-founded by Cameron and Tyler Winklevoss, has confidentially filed for an initial public offering in the United States, signaling a significant step toward entering public markets. The firm is collaborating with investment banks Goldman Sachs and Citigroup on the offering, according to individuals familiar with the matter. While the timeline and final decision remain pending, the confidential nature of the filing allows Gemini to prepare for a potential listing without immediate public disclosure. This move follows the conclusion of a nearly two-year investigation by the U.S. Securities and Exchange Commission into Gemini's operations. In February, Cameron Winklevoss announced that the SEC had closed its inquiry without recommending enforcement action, removing a significant regulatory hurdle. Additionally, Gemini settled a separate lawsuit with the Commodity Futures Trading Commission in January, agreeing to a $5 million penalty over allegations related to its 2017 bid to offer Bitcoin futures contracts. Gemini's decision to pursue an IPO comes amid a broader shift in the U.S. regulatory landscape under the current administration, which has adopted a more crypto-friendly stance. This environment has encouraged several digital asset firms, including Kraken and Circle, to explore public listings. Notably, the Winklevoss twins were among approximately 30 crypto executives who attended a White House summit focused on digital assets, reflecting the administration's engagement with the industry. Founded in 2014, Gemini has positioned itself as a regulated and secure platform for cryptocurrency trading and custody. The exchange operates in multiple global markets, including New York, Singapore, London, and Dublin. In late 2024, Gemini expanded its services to France in anticipation of new EU cryptocurrency regulations. The company has also diversified its offerings, launching products such as the Gemini Dollar stablecoin and acquiring the NFT platform Nifty Gateway in 2019. ADVERTISEMENT Despite its growth, Gemini has faced challenges, particularly related to its Earn program, which allowed customers to lend crypto assets to the now-bankrupt lender Genesis. The program's suspension in November 2022 led to approximately $940 million in customer assets being frozen. However, a rise in crypto prices has since enabled Gemini and Genesis to return over $2 billion worth of crypto to affected customers.
The National
3 hours ago
- The National
Trump presses Fed's Powell to cut interest rates by a full point
US President Donald Trump called on Jerome Powell to cut interest rates by a full percentage point on Thursday, ramping up his pressure on the Federal Reserve chair. Mr Trump's latest attacks on the Fed chair came shortly after a Labour Department report showed employers added 139,000 jobs last month, slower than its March gain but still above economists' projections. The unemployment rate remained steady at 4.2 per cent. ''Too Late' at the Fed is a disaster!,' Mr Trump wrote on Truth Social, referring to Mr Powell. 'Europe has had 10 rate cuts, we have had none. Despite him, our Country is doing great. Go for a full point, Rocket Fuel!' In a series of follow-up posts, Mr Trump claimed rate cuts would allow the US to lower short and long-term rates 'on debt that is coming due'. Mr Trump has regularly attacked Mr Powell in recent months over the Fed chair's caution in cutting interest rates. Mr Powell so far has resisted the pressure from the White House and maintains that policy decisions will be data dependent. He and other members on the rate-setting Federal Open Market Committee are currently debating how Mr Trump's tariffs will affect the economy. Speaking in New York on Thursday, Fed Governor Adriana Kugler laid out her support for keeping rates at their current level due to rising inflation risks. Also speaking on Thursday, Kansas City Fed president Jeff Schmid said he expects tariffs will 'likely push up prices', with their effects not being 'fully apparent for some time'. The Fed, which has left rates unchanged for the past three meetings at roughly 4.3 per cent, will hold its next two-day meeting from June 17-18. The Fed's next blackout period begins at midnight on Saturday, meaning there will be no public communications from the central bank before it announces its next rate decision. Traders anticipate the Fed will keep rates unchanged through the summer, according to CME Group data.
The National
3 hours ago
- The National
Elon Musk has 'lost his mind', Donald Trump says
Elon Musk has 'lost his mind', President Donald Trump said on Friday after a bitter falling-out between the world's richest person and the world's most powerful man. Mr Trump told ABC News in a phone call that he was 'not particularly interested' in talking to Mr Musk following Thursday's dramatic break-up. 'You mean the man who has lost his mind?' ABC quoted Mr Trump as saying. An extraordinary and public meltdown in the Trump-Musk relationship played out on social media over several hours, with a dispute over the US President's tax bill quickly escalating into a remarkably personal exchange during which Mr Musk appeared to call for Mr Trump's impeachment. It was a stunning collapse for a close relationship that deepened last year when Mr Musk pumped hundreds of billions of dollars into the Republican's campaign. The tech tycoon was invited into the inner White House to gut parts of the federal workforce through his 'Department of Government Efficiency'. Reports had suggested the two would speak by phone on Friday in a bid to patch up the damaging public row, but the White House scotched that speculation. 'The President does not intend to speak to Musk today,' a senior White House official told AFP when asked if the pair planned to speak. ABC said Mr Trump seemed 'bummed' about the collapse of the relationship, and in a telling symbol, an official told the network that the President is considering selling or giving away a Tesla he had bought to show support for Mr Musk amid protests against the company. A break-up in the billionaire bromance had appeared to be on the cards since Tuesday, after Mr Musk said the Republican President's signature 'big, beautiful' tax bill was a ' disgusting abomination ' that would blow up the national debt. The row exploded on Thursday when Mr Trump said he was 'very disappointed' in Mr Musk and threatened to end his government contracts. Mr Musk even posted, without providing proof, that Mr Trump was referenced in government documents on the disgraced financier and sex offender Jeffrey Epstein. He also approvingly retweeted a post that said Mr Trump should be impeached and Vice President JD Vance sworn in as US leader.
