Gold Slips From Record High as Risk Appetite Rises, But Recession Fears Keep Prices Elevated

Gold prices dipped slightly on Monday, pulling back from record highs as global risk sentiment improved following partial tariff exemptions from the U.S. However, safe haven demand remained strong amid ongoing U.S.-China trade tensions and recession concerns. Spot gold edged down 0.3% to $3,225.79 per ounce, while June gold futures slipped 0.1% to $3,240.87. Despite the pullback, spot prices stayed close to last week’s record high of $3,245.69.

Markets welcomed news that some electronic goods would be excluded from President Donald Trump’s aggressive 145% tariffs on Chinese imports, boosting Asian stocks and U.S. futures. Major importers like Apple (NASDAQ:AAPL) were seen benefiting. Still, Trump warned that electronics may soon face a 20% levy under separate measures, keeping investors cautious. China responded with 125% retaliatory tariffs and has begun seeking new trade partnerships, further escalating tensions.

Ongoing fears of disrupted supply chains and a potential U.S. recession—now priced at a 50% chance by traders—continue to support gold prices. A weaker dollar and falling Treasury yields also added to gold’s appeal as a hedge.

In metals trading, platinum futures rose 0.8% to $951.90/oz, while silver futures fell 0.3% to $31.827/oz. Copper on the London Metal Exchange held steady at $9,152.90 per ton.

Goldman Sachs (NYSE:GS) raised its 2025 gold price target to $3,700 per ounce, citing intensifying demand for safe haven assets amid economic uncertainty. The bank noted that in a severe scenario, gold could spike to $4,500 by year-end 2025, reinforcing bullion’s role as a recession hedge.