Gold prices retreated on Monday, April 14, despite reaching a record high during the day. Spot gold fell by 0.7% to $3,213.69 per ounce after hitting an intraday all-time high of $3,245.42. U.S. futures gold settlement price dropped 0.6% to $3,226.30.
The market pullback is closely linked to changes in risk sentiment. Market mood improved after the White House announced an exemption from high tariffs on certain electronic products like smartphones and computers, leading some investors to withdraw funds from safe-haven assets such as gold. Nevertheless, the current economic and market environment remains favorable for gold, and investors are optimistic about the long-term outlook for gold prices.
Analysts point out that while the tariff exemption may reduce some safe-haven demand, trade and tariff uncertainties persist. Additionally, a weaker dollar and declining bond yields continue to support gold. These factors combine to maintain gold's strong appeal.
Moreover, demand for gold remains robust. Goldman Sachs has raised its year-end gold price target to $3,700 per ounce, mainly considering central bank demand exceeding expectations and recession risks driving inflows into gold ETFs. Meanwhile, the World Gold Council (WGC) reports that since April, China's physical gold exchange-traded funds (ETFs) inflows have surpassed the total inflows of the first quarter and exceeded those of U.S. gold ETFs, indicating a continued global demand growth for gold.
In other precious metals, spot silver rose slightly by 0.1% to $32.27 per ounce; platinum increased by 1% to $952.1 per ounce; and palladium surged by 4.6% to $957.27 per ounce, reflecting an overall warming of the precious metals market.
