Trump temporarily exempts technology products from tariffs, gold price falls from historical high

Recently, President Trump temporarily waived the equivalent tariffs on technology products such as smartphones, computers, and semiconductors, which boosted market confidence and led to an increase in U.S. stock futures. Meanwhile, the price of gold retreated from its historical high at the start of Monday, April 14th.

As of 7:02 AM Greenwich Mean Time on April 14th, the spot price of gold fell by 0.1% to $3,232.49 per ounce.

Earlier in the day, the price of gold reached a new historic high of $3,245.42 per ounce. U.S. futures gold rose by 0.1% to $3,248.30.

Tim Waterer, Chief Market Analyst at KCM Trade, stated that “the weakening of the U.S. dollar contributed to the rise in gold prices, but the news of the exemption of tariffs on technology products boosted market risk appetite, leading to reduced demand for safe-haven assets.”

Last Friday, the White House announced the exemption of certain technology products from equivalent tariffs. However, President Trump emphasized on Sunday, April 13th, that the temporary exemption of tariffs on smartphones, computers, and other electronic products.

Waterer noted that “the ongoing trade and tariff disputes have intensified financial market volatility and uncertainty. In this scenario, if the U.S. dollar continues to weaken, gold prices may approach $3,300 in the short term.”

Gold, a non-yielding asset, traditionally serves as a hedge against economic uncertainty and currency inflation.

Amid escalating trade tensions between China and the U.S., the price of gold broke the $3,200 per ounce barrier last Friday.

Goldman Sachs has raised its year-end 2025 price prediction for gold from $3,300 per ounce to $3,700, citing central bank demand surpassing expectations and an increase in ETF (exchange-traded fund) inflows.

Traders anticipate an 80 basis point rate cut by the end of 2025.

Low-interest rates often stimulate prosperity in the gold and silver markets.

Analysts indicated that due to consumers and investors seeking safe havens amidst the China-U.S. trade war, the premium on Chinese gold widened last week.

Silver spot prices fell by over 0.6% to $32.06 per ounce; platinum rose by 1% to $952.50, and palladium increased by 1.3% to $927.25.

(This article is based on reporting by Reuters)