Gold prices climbed to a more than three-week high on Monday amid uncertainty following the Supreme Court’s ruling against President Donald Trump’s tariffs.
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Gold rose over 1% to a three-week high on Monday, as the U.S. Supreme Court ruling against President Donald Trump’s tariffs sent the dollar lower and injected fresh uncertainty into trade policy, stirring up demand for the safe-haven metal.
Spot gold was up 1% at $5,152.11 per ounce, having hit its highest since January 30 earlier. The metal touched a record high of $5,594.82/oz on January 29. U.S. gold futures for April delivery were up 1.8% at $5,172.80. The Mainland China market was closed for Lunar New Year holidays. Trading is set to resume on Tuesday.
The dollar fell after the Supreme Court found on Friday Trump’s sweeping tariffs exceeded his authority, making greenback-priced commodities like bullion more affordable for overseas buyers.
“The price recovery in both gold and silver has likely been assisted by concerns or confusion even over the outlook for tariffs,” said independent analyst Ross Norman, adding that there were multiple tailwinds including weak economic growth data.
Trump responded by lashing out at the court and imposing a blanket 15% levy on imports — the maximum level allowed under the law — and insisting that trade deals with nearly 20 countries, most with higher tariffs, should stay.
“After surging to unprecedented heights earlier this year, gold is showing signs of reclaiming its long-term bull market but in a more measured way,” Norman said.
Data on Friday showed underlying U.S. inflation increased more than expected in December, and signs are pointing to a further acceleration in January. This could discourage the Federal Reserve from easing interest rates soon, lessening the appeal of holding non-yielding gold.
Markets are awaiting signals from a slew of Fed speakers this week that could further illuminate the policy path, and any updates on developments concerning the U.S. and Iran.
Spot silver climbed 2.3% to $86.55, a more than two-week high. Platinum edged 0.4% higher to $2,164.62/oz, palladium added 1.2% to $1,769.43/oz.