Gold prices declined slightly during Asian trade on Monday, pulling back from fresh record highs last week as improving risk sentiment and a rebound in the United States dollar reduced the appeal of the precious metal as a safe-haven asset.
By 3:15 pm AEST (5:15 am GMT), spot gold was down US$11.78, or 0.4%, trading at US$3,226.41 per ounce. The decline ends a three-day rally that had pushed prices to a new all-time high of US$3,245 per ounce on Friday.
Traders attributed the drop to easing safe-haven flows during Asian trading, following a turnaround in U.S. equities on Friday and a de-escalation in U.S.-China tariff tensions. The positive shift in market sentiment has temporarily softened the bullish momentum in gold.
Over the weekend, U.S. President Donald Trump granted tariff exclusions on smartphones, computers, and other consumer electronics, providing a degree of relief to markets.
These developments lifted global sentiment and supported a modest recovery in the U.S. dollar from near three-year lows, further weighing on gold. A stronger dollar typically dampens demand for dollar-denominated assets like gold.
Meanwhile, Goldman Sachs has once again raised its year-end gold price forecast, now projecting $3,700 per ounce by the end of 2025. This marks the bank's third upward revision this year, following previous targets of $3,100 in February and $3,300 in March.
Market participants are now awaiting a series of speeches from U.S. Federal Reserve policymakers, which could offer fresh clues on monetary policy and inflation expectations.
