Gold prices surged to a three-week high on Monday as uncertainty surrounding US trade policy prompted investors to seek refuge in safe-haven assets. The US Supreme Court’s recent decision to strike down a broad set of tariffs imposed under former President Donald Trump added fresh volatility to global markets.
Market Reaction to the Tariff Ruling
Spot gold climbed 1.1% to $5,158.29 per ounce by 05:58 GMT, reaching its highest level since January 30. Meanwhile, US gold futures for April delivery rose 2% to $5,180.40 per ounce.
Tim Waterer, chief market analyst at KCM Trade, commented, “The court’s tariff ruling has, aside from earning the ire of the US president, added another layer of uncertainty to global markets, with traders again turning to gold as a defensive play.”
The Supreme Court struck down the sweeping tariffs that Trump had implemented under a law intended for national emergencies. The ruling, delivered on Friday, is seen as a major setback for the former president and has significant implications for the global economy. Following the decision, Trump announced plans to increase a temporary 10% tariff on all US imports to 15%.
Dollar and Wall Street Futures Weaken
The ruling weighed on the US dollar and Wall Street futures, particularly in Asia, as investors anticipated potential disruptions to trade and revived the “sell America” sentiment. Analysts suggest that the duration of tariff uncertainty and geopolitical developments — including potential US military actions in Iran — will influence gold’s trajectory.
Gold and Silver Prices Rebound in Pakistan After One-Day Pause
Iran has signaled a willingness to make concessions on its nuclear program in exchange for sanctions relief, aiming to avoid a US attack. These geopolitical concerns have reinforced the appeal of gold as a hedge against instability.
Inflation and Other Precious Metals
Recent US data showed higher-than-expected underlying inflation for December, with indications of further acceleration in January. This supports expectations that the Federal Reserve is unlikely to cut interest rates before June, adding another layer of uncertainty for investors.
Other precious metals also responded to market conditions:
- Spot silver rose 2.9% to $86.98 per ounce, marking a more than two-week high.
- Spot platinum edged up 0.1% to $2,158.55 per ounce.
- Palladium slipped 0.2% to $1,745.09 per ounce.
With trade tensions and inflation concerns creating a volatile backdrop, gold remains a preferred safe-haven asset as investors weigh the risks to global markets.
