Gold prices fell in Asian trade on Monday, retreating further from record highs as reports that U.S. President Donald Trump's April 2 tariffs would be less severe than feared weighed on safe-haven demand.

A weaker dollar limited losses in gold, while broader metal prices rose slightly. Copper was supported by expectations of tighter global supply, especially in the face of U.S. tariffs and Chinese smelter shutdowns.

Gold remained ahead of recent peaks, as safe-haven demand remained supported by uncertainty over the U.S. economy and Trump's broader tariff plans.

Spot gold fell 0.2% to $3,018.51 an ounce, while May gold futures were steady at $3,049.30/oz. Spot prices hit a record high of $3,057.5/oz last week. Bets on Trump's less stringent tariffs weigh on gold, boost risk appetite

Gold's losses came as Wall Street futures jumped, as the market bet that the economic impact of Trump's tariffs would be less pronounced.

Bloomberg and the Wall Street Journal reported on Sunday that Trump would not impose tariffs on autos, pharmaceuticals, semiconductors and commodities on April 2, as previously threatened.

Trump's retaliatory tariffs on trading partners are also expected to be limited to a group of 15 countries with large trade imbalances with the U.S., limiting their broader impact.

The White House has not confirmed the reports, however, keeping markets uncertain. Tariffs on key U.S. imports are also expected to push up domestic inflation and dampen economic activity.

That notion has kept demand for gold as a safe haven relatively strong, with about a week left until Trump's tariff deadline.

Beyond tariffs, the focus also remains on ongoing peace talks over Russia and Ukraine, as well as rising tensions in the Middle East.

A slew of key U.S. economic readings — including purchasing managers' index data, PCE price index data and revised fourth-quarter gross domestic product — are due this week.

Among other precious metals, platinum futures rose 0.3% to $981.15/oz while silver futures rose 0.7% to $33.735/oz, after both metals posted some losses last week. (Newsmaker23)

Source: Investing.com