- Gold rises 0.6% to three-week high
- Supreme Court strikes down Trump's emergency tariffs
- Trump increases temporary U.S. import tariff to 15%
- Dollar, Wall Street futures fall amid tariff uncertainty
Early Wednesday, spot gold climbed to $5,136.22 an ounce by 0729 GMT, reaching a peak last seen on January 30. Trading at that level marked a rise of 0.6%. Futures contracts for April delivery rose more sharply, adding 1.5%, settling at $5,157.50. This followed Friday's upward trend, where prices closed up 0.8%. Strength came alongside turbulence in global stocks and shifting foreign exchange values.
Futures on Wall Street dipped during Asia's trading window, as the dollar lost ground - reigniting a pattern some market participants call a retreat from U.S. assets. The dollar index dropped 0.4% at open, following a 0.3% slide earlier, helping foreign buyers find dollar-denominated raw materials cheaper.
"The court's tariff ruling has, aside from earning the ire of the U.S. president, added another layer of uncertainty to global markets, with traders again turning to gold as a defensive play," said Tim Waterer, chief market analyst at KCM Trade.
The nation's highest court struck down wide-ranging emergency-based import taxes last Friday, dealing a notable blow to executive authority. Following the ruling, Donald Trump moved quickly to impose a stopgap 10% duty on goods from every trading partner - later raising it by five percentage points.
Dollar Slump Lifts Gold Appeal
Gold climbed as shifts in trade rules stirred currency reactions. According to Reuters, Asian trading saw slight dips in U.S. stock futures even though the S&P 500 had gained 0.4% the day before, hinting at growing caution early in the week. Meanwhile, government bond returns dipped too - the standard 10-year rate dropped to 3.84%, down from its Friday close of 3.88%. That drop followed broader market unease.
A weaker U.S. currency often lifts gold values, since purchases become cheaper for those paying in foreign money. Following the Supreme Court's decision, uncertainty returned to policy outlooks; this shift led investors to rethink their positions in American financial holdings.
"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 U.S. engages in military action against Iran," Waterer said.
Beyond tariffs, shifting global alliances began shaping how investors weighed risks. Not long after talks restarted, Tehran signaled openness to compromise over nuclear activities - if sanctions were lifted and enrichment rights acknowledged by the U.S. Seen by many as a bid to prevent conflict, the statements eased fears of supply interruptions in oil routes.
Inflation trends shaped how investors viewed future central bank moves. A report issued Friday revealed core U.S. inflation rose higher than forecast last month, suggesting costs could be gaining momentum early this year. The data, per Reuters, strengthened beliefs rates might stay steady through midyear before any reduction.
Inflation Hints Boost Safe Haven Demand
Even so, gold kept attracting interest despite the pressure from lasting high rates. Because market participants weighed rising real yields alongside concerns about shifting policies. Although these dynamics often dampen appetite, buying persisted where doubt remained.
Fresh off early-session momentum, spot silver advanced 1.2%, hitting $85.57 an ounce - a peak unseen since mid-February. Although known for dual roles in jewelry and tech sectors, the metal mirrored upward moves in gold, pulled higher by investor appetite spreading across precious assets.
Palladium dipped to $1,740.25, down 0.4%, whereas platinum fell more gently - by just 0.3% - to $2,149.22 an ounce. Although broad economic forces shaped how investors felt, each metal followed its own path due to unique market pressures and distinct uses across industries.
One moment, market attention centered on seasonality and central bank moves; the next, legal rulings in Washington pulled focus sharply. A court outcome triggered sudden changes in import taxes, showing how fast trade environments might transform. While some tracked traditional signals like demand cycles, fresh regulatory turns took precedence without warning.
A shift in global tensions started affecting prices again after a quiet stretch. Though gains paused midyear, momentum returned as fresh numbers came out. What followed was steady movement higher once confidence stabilized. Records set months ago now look within reach again under current conditions.
Last week brought small gains in gold-backed ETFs, after just a brief period of declines. Shifts like these often follow growing unease among investors seeking safer positions.
Though certain experts warned of continued turbulence ahead, attention mostly settled on steadiness and safeguarding assets. As worldwide stock markets encountered scattered unrest and fixed-income sectors adapted to evolving interest-rate outlooks, gold once again stood out for its enduring function as a reliable reserve.
Right now, where gold goes depends mostly on what U.S. officials say next about tariffs - clarity there matters. Shifts in upcoming economic numbers also play a role, since they affect how traders view future Fed moves. Meanwhile, talks tied to Iran draw attention, simply because any change might shake energy costs. That ripple can shift how investors feel about taking risks elsewhere.
Now rising to its highest point in three weeks, gold shows how fast financial attention moves when court decisions meet changing trade rules alongside broader economic cues. Real-time adjustments follow, as market reactions unfold amid shifting conditions. Priorities shift - not slowly, but suddenly - when these forces combine.
FAQs
Why did gold prices rise after the US Supreme Court tariff ruling?
Gold climbed as the court's decision to strike down sweeping tariffs created uncertainty in global markets. The ruling pressured the dollar and drove investors toward bullion as a safe-haven asset.
How high did gold prices reach amid tariff uncertainty?
Spot gold rose 0.6% to $5,136.22 per ounce, its highest level since January 30. U.S. gold futures for April delivery gained 1.5% to $5,157.50.
What tariffs did Donald Trump announce following the court decision?
After the ruling, President Donald Trump said he would increase a temporary U.S. import tariff from 10% to 15%. The move followed the Supreme Court's rejection of his broader global tariff measures.
How are US inflation and Fed rate expectations affecting gold?
Data showed underlying U.S. inflation rose more than expected in December, with further acceleration seen in January. This has reinforced expectations that the Federal Reserve may delay interest rate cuts until at least June.
Could tensions with Iran influence gold prices further?
Analysts say gold's outlook may depend partly on geopolitical risks involving Iran. Tehran has signaled willingness for nuclear concessions if sanctions are lifted, as it seeks to avoid potential U.S. military action.
