Gold prices surged to a three-week high on Monday, propelled by heightened uncertainty following a landmark US Supreme Court decision that struck down former President Donald Trump’s sweeping tariffs. The ruling pressured the US dollar and ignited a flight to safe-haven assets like bullion.
Market Reaction and Price Movements
Spot gold climbed 1.1% to $5,158.29 per ounce by 0558 GMT, reaching its highest level since January 30. US gold futures for April delivery advanced 2% to $5,180.40. The precious metal’s rally coincided with a slide in Wall Street futures and the dollar in Asian trading, as the tariff ambiguity revived “sell America” sentiment among traders.
Analyst Insights on Tariff Impact
“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,” said Tim Waterer, chief market analyst at KCM Trade. The Supreme Court’s Friday decision, which rejected tariffs pursued under national emergency laws, represents a significant setback for Trump and carries major implications for the global economy.
In response, Trump announced he would raise a temporary tariff from 10% to 15% on US imports from all countries, further clouding the trade outlook.
Broader Precious Metals and Economic Context
Other precious metals also saw gains, with spot silver jumping 2.9% to $86.98 per ounce, a more than two-week high. Spot platinum edged 0.1% higher to $2,158.55, while palladium slipped 0.2% to $1,745.09.
Market attention remains divided between trade policy and geopolitical risks. “Whether gold can claw its way back above $5,400 in the near-term may rest on how long tariff uncertainty lingers and whether the US engages in military action against Iran,” Waterer added. Iran has indicated willingness to make nuclear concessions in talks with the US to avert an attack, seeking sanctions relief and recognition of its uranium enrichment rights.
Meanwhile, underlying US inflation data for December exceeded expectations, with signs pointing to further acceleration in January. This strengthens expectations that the Federal Reserve will delay interest rate cuts until at least June, adding another dimension to the economic landscape influencing gold’s appeal.
