Gold prices rose more than 1% to a three-week high on Monday as the U.S. Supreme Court’s ruling against President Donald Trump’s tariffs weakened the dollar, created new uncertainty in trade policy and stimulated demand for the safe-haven metal.
Spot gold rose 0.9% to $5,146.89 an ounce by 10:10 a.m. Japan time, up 1.1% and its highest since Jan. 30. U.S. gold futures for April delivery rose 1.7% to $5,167.90.
The dollar fell on Friday after the Supreme Court found that President Trump’s sweeping tariffs exceeded the president’s authority and made dollar-priced goods such as bullion more affordable to overseas buyers.
“The recovery in gold and silver prices was likely driven by concerns and confusion even over the prospect of tariffs,” independent analyst Ross Norman said, adding there were multiple tailwinds, including weak economic growth data.
President Trump slammed the court, arguing it should impose a flat 15% tariff on imports, the highest level allowed by law, and maintain trade agreements with nearly 20 countries, most of which impose higher tariffs.
“After surging to unprecedented heights earlier this year, gold is showing signs of returning to its secular bull run, but in a more cautious way,” Norman said.
Data on Friday showed underlying U.S. inflation rose more than expected in December, with signs of further acceleration in January. This could deter the Federal Reserve from cutting interest rates anytime soon, making holding non-yielding gold less attractive.
Markets are watching for signals from a number of Fed speakers this week that could shed further light on the policy path.
Global markets are also keeping an eye on tensions between the United States and Iran, with Iran indicating it is willing to make concessions on its nuclear program in exchange for sanctions relief and recognition of the right to enrich uranium.
Spot silver rose 2.6% to $86.73 an ounce, its highest in more than two weeks. Spot platinum rose 0.3% to $2,163.64 an ounce and palladium rose 1.8% to $1,779.81.
