Gold prices rose to their highest level in more than three weeks on Monday as fresh uncertainty triggered by the US Supreme Court’s decision to invalidate a large portion of President Donald Trump’s tariffs weighed on the dollar and drove investors toward safe-haven assets.
Spot gold advanced 1.1% to $5,161.64 per ounce by 0419 GMT, after earlier touching its strongest level since January 30. US gold futures for April delivery gained 2% to $5,183.
“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, KCM chief analyst.
The US Supreme Court struck down Donald Trump’s sweeping tariffs that he pursued under a law meant for use in national emergencies, handing the Republican president a stinging defeat in a landmark ruling on Friday with major implications for the global economy.
In response to the decision, Trump said he would increase a temporary tariff on US imports from all countries to 15% from 10%.
Wall Street futures and the dollar declined in Asian trading on Monday as renewed ambiguity over US trade policy revived the “sell America” trade.
“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 signalled it is willing to offer concessions on its nuclear programme in negotiations with the US in exchange for sanctions relief and acknowledgement of its right to enrich uranium, aiming to prevent a potential US strike.
Separately, data released on Friday showed core US inflation rose more than anticipated in December, with indications pointing to a further pickup in January. This has reinforced expectations that the Federal Reserve is unlikely to cut interest rates before June.
Among other precious metals, spot silver climbed 3.1% to $87.20 per ounce, marking a more than two-week high. Spot platinum edged up 0.1% to $2,158 per ounce, while palladium dipped 0.1% to $1,747.11.
