Gold climbs to 3-week high as US tariff ruling stokes uncertainty
- Spot gold climbed 1.1% to $5,161.64 per ounce
- US gold futures for April delivery were up 2% at $5,183
- Spot silver climbed 3.1% to $87.20 per ounce, a more than two-week high
Gold prices climbed to a more than three-week high on Monday as uncertainty stoked by the US Supreme Court’s decision to strike down a vast swathe of President Donald Trump’s tariffs pressured the dollar and pushed investors to the safety of bullion.
Spot gold climbed 1.1% to $5,161.64 per ounce by 0419 GMT, earlier hitting its highest since January 30.
US gold futures for April delivery were up 2% at $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.
After the court ruling, Trump said he would raise a temporary tariff from 10% to 15% on US imports from all countries.
Wall Street futures and the dollar slid in Asia on Monday as murkiness around US tariffs 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 indicated it is prepared to make concessions on its nuclear programme in talks with the US in return for the lifting of sanctions and recognition of its right to enrich uranium, as it seeks to avert a US attack.
Meanwhile, data on Friday showed underlying US inflation increased more than expected in December, and signs are pointing to a further acceleration in January, which would strengthen expectations that the Federal Reserve won’t cut interest rates before June.
Spot silver climbed 3.1% to $87.20 per ounce, a more than two-week high.
Spot platinum edged 0.1% higher to $2,158 per ounce, while palladium slipped 0.1% to $1,747.11.
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