Gold prices fell from their record highs on Monday after a slight improvement in risk appetite, coinciding with the United States signaling some exemptions from the steep tariffs imposed on China.

Weakness in the dollar and government bond prices helped support gold relatively, as it continued to trade above $3,200 an ounce. Additionally, some comments regarding monetary easing from the Federal Reserve helped support prices.

Spot gold fell by 0.3% to $3,225.79 per ounce, while gold futures expiring in June fell by 0.1% to $3,240.87 per ounce. Spot gold remained close to its record high of $3,245.69 per ounce hit last week.

Gold’s losses came amid gains in risk-driven markets, with Asian stocks rising sharply on Monday. US stock index futures also rose in Asian trading.

Risk appetite improved after the White House confirmed over the weekend that electronic goods would not be included in President Donald Trump's steep 145% tariffs against China. This move provided some relief to major US companies with heavy exposure to imports from China, especially Apple Inc. Trump downplayed the situation, stating that electronic imports would still face a 20% tariff and that he would announce separate import tariffs on electronics soon.

Trump's comments caused investors to be concerned about further tariffs, especially after China and the US engaged in a sharp tariff exchange last week.

Beijing announced retaliatory tariffs of 125% against the US in response to Trump's latest move, showing no intent to back down. China also appeared to be reaching out to other trading partners.

Nonetheless, the severe trade war between the world’s two largest economies is expected to shake global supply chains and economic growth, with traders pricing in at least a 50% chance of a US recession this year.

This scenario had supported gold prices in recent weeks while most other metals lagged. However, weakness in the dollar provided some relief to metal markets on Monday. Platinum futures rose by 0.8% to $951.90 per ounce, while silver futures fell by 0.3% to $31.827 per ounce.

Goldman Sachs Group raised its 2025 gold price target on Sunday to $3,700 per ounce from $3,300 per ounce, marking its third such increase this year.

The investment group pointed to increased demand for gold as a haven in the face of the intense US-China trade war and said that in a critical scenario, gold could rise to $4,500 per ounce by the end of 2025.

Goldman Sachs also noted that gold serves as a hedge against increased risks of a US recession.

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