Gold prices fell on Monday from a record high hit earlier in the session as trade tensions eased after U.S. President Donald Trump exempted smartphones and computers from "reciprocal" U.S. tariffs.

Spot gold was down 0.1% at $3,232.45 an ounce, as of 0329 GMT. Bullion hit a record high of $3,245.42 earlier in the day.

U.S. gold futures edged up 0.1% to $3,248.20.

"A weaker U.S. dollar has helped gold prices, but news of the tech tariff exemptions has boosted risk appetite and caused safe-haven demand to decline. This has left gold price directionless," said KCM Trade chief market analyst Tim Waterer.

The White House announced the exemptions from the high reciprocal tariffs on Friday. However, Trump reiterated on Sunday his administration's latest message that exempting smartphones and computers from its reciprocal tariffs on China would be short-lived.

"The ongoing trade and tariff drama has created volatility and a higher level of uncertainty in financial markets, and in such an environment gold prices could eye a rise towards $3,300 in the near term if dollar weakness persists," Waterer said.

Non-yielding bullion is traditionally seen as a hedge against economic uncertainty and inflation.

Gold prices surged above $3,200 an ounce for the first time on Friday as escalating U.S.-China trade tensions rattled global markets.

Goldman Sachs raised its end-2025 gold price forecast to $3,700 an ounce from $3,300, citing stronger-than-expected central bank demand and rising ETF inflows.

Traders expect a decline of around 80 basis points by end-2025.

Bullion tends to thrive in a low interest rate environment.

Elsewhere, gold price premiums in top consumer China widened last week as consumers and investors sought protection from the country's escalating trade war with the United States, analysts said.

Spot silver fell more than 1% to $31.91 an ounce, while platinum rose 0.6% to $948.45 and palladium gained 0.8% to $922.98. (Newsmaker23)

Source: Reuters