Gold prices rose to a three-week high on Monday as uncertainty raised by the U.S. Supreme Court’s decision to roll back President Donald Trump’s wide-ranging tariffs put pressure on the dollar and investors sought safe bullion.
Spot gold rose 1.1% to $5,158.29 an ounce by 5:58 a.m. Japan time, its highest since January 30. U.S. gold futures for April delivery rose 2% to $5,180.40.
“The court’s tariff ruling has not only angered the U.S. president, but has also created further uncertainty in global markets, with traders once again turning to gold for protection,” said Tim Waterer, chief market analyst at KCM Trade.
In a landmark ruling with major implications for the global economy, the U.S. Supreme Court on Friday struck down sweeping tariffs advanced by President Trump under the National Emergencies Act, handing the Republican president a stinging defeat.
After the court ruling, President Trump said he would increase interim tariffs on U.S. imports from all countries from 10% to 15%.
Wall Street futures and the dollar fell in Asian markets on Monday as uncertainty over U.S. tariffs revived “sell America” trading.
“Whether gold can climb above $5,400 in the short term may depend on how long tariff uncertainty persists and whether the US takes military action against Iran,” Waterer said.
To avoid a U.S. attack, Iran has indicated in talks with Washington that it is willing to make concessions on its nuclear program in exchange for sanctions relief and recognition of the right to enrich uranium.
Meanwhile, Friday’s data showed underlying U.S. inflation rose more than expected in December, with signs of further acceleration in January and will strengthen expectations that the Federal Reserve will not cut interest rates before June.
Spot silver rose 2.9% to $86.98 an ounce, its highest in more than two weeks.
Spot platinum rose 0.1% to $2,158.55 an ounce, while palladium fell 0.2% to $1,745.09.
(Reporting by Pablo Sinha in Bengaluru; Editing by Ronojoy Mazumdar and Subransh Sahu)
