Gold Rises to 3-Week High Following US Tariff Ruling: What Investors Need to Know for Market Opportunities
Gold prices surged to a more than three-week high on Monday as uncertainty arising from the U.S. Supreme Court’s decision to overturn a significant portion of President Donald Trump’s tariffs weakened the dollar and prompted investors to seek refuge in bullion.
Spot gold rose 1.1% to $5,161.64 per ounce by 0419 GMT, earlier reaching its highest level since January 30. Meanwhile, U.S. gold futures for April delivery increased by 2% to $5,183.
Tim Waterer, chief analyst at KCM, noted, “The court’s tariff ruling, besides drawing strong criticism from the U.S. president, has introduced an additional layer of uncertainty to global markets, leading traders to turn to gold as a safe haven.”
In a landmark decision on Friday, the U.S. Supreme Court struck down the extensive tariffs imposed by Trump under a law intended for national emergencies, delivering a significant setback to the Republican president with far-reaching consequences for the global economy.
In response, Trump announced plans to raise a temporary tariff from 10% to 15% on imports from all countries.
On Monday, Wall Street futures and the dollar fell in Asian trading as uncertainties regarding U.S. tariffs revived the “sell America” trend.
Waterer added that gold’s ability to reclaim levels above $5,400 in the near term will depend largely on the duration of tariff-related uncertainty and the possibility of U.S. military action against Iran.
Iran has signaled willingness to make concessions in its nuclear program during negotiations with the U.S., seeking sanctions relief and recognition of its uranium enrichment rights to avoid potential U.S. military strikes.
In addition, U.S. data released Friday showed underlying inflation rose more than expected in December, with indications pointing to further acceleration in January, reinforcing expectations that the Federal Reserve may delay interest rate cuts until after June.
Meanwhile, spot silver climbed 3.1% to $87.20 per ounce, marking a more than two-week high. Spot platinum inched up 0.1% to $2,158 per ounce, while palladium edged down 0.1% to $1,747.11.
(Reporting by Pablo Sinha in Bengaluru; Editing by Ronojoy Mazumdar)
Special Analysis by Omanet | Navigate Oman’s Market
The recent U.S. Supreme Court ruling striking down major tariffs has heightened global market uncertainty, driving gold prices to a three-week high as investors seek safe havens. For businesses in Oman, this signals increased volatility but also greater demand for precious metals as a hedge against risk. Smart investors and entrepreneurs should consider diversifying into commodities like gold and silver to capitalize on growing geopolitical tensions and inflationary pressures while remaining vigilant to shifts in global trade policies.
