Gold prices experience a decline as former President Trump alleviates trade tensions by implementing tariff exemptions. Gold prices experienced a decline on Monday following U.S. President Donald Trump’s decision to alleviate trade tensions by providing tariff exemptions on smartphones, computers, and various other electronics predominantly sourced from China.

Spot gold experienced a decline of 0.4%, trading at $3,223.67 per ounce as of 0036 GMT. Bullion reached an unprecedented peak of $3,245.28 in the last trading session. U.S. gold futures experienced a slight decline of 0.1%, settling at $3,240.90. On Friday, gold prices surged past the $3,200-per-ounce threshold for the first time, driven by escalating trade tensions between the U.S. and China that unsettled global markets.

On Friday, the White House revealed the exclusions from the significant reciprocal tariffs. On Sunday, Trump emphasized his administration’s recent stance regarding the temporary exclusion of smartphones and computers from reciprocal tariffs imposed on China, indicating that this reprieve will not last long. In March, U.S. monthly producer prices experienced an unexpected decline of 0.4%. However, analysts anticipate that tariffs on imports will contribute to an uptick in inflation in the upcoming months. Market analysts anticipate approximately 80 basis points in rate reductions by the conclusion of 2025.

Gold, which does not yield interest, remains a conventional safeguard amid global uncertainties and inflation, and typically performs well in a low-interest-rate climate. In other developments, the price premium for gold in the leading consumer market continues to attract attention. Last week, China experienced a widening of its spot prices above global benchmarks, as consumers and investors sought safety amid the intensifying trade conflict with the United States, according to analysts.

Spot silver experienced a decline of 0.7%, settling at $32.04 per ounce. In contrast, platinum saw an increase of 0.7%, reaching $949.25, while palladium also rose by 0.7%, closing at $922.25.