Court ruling on Trump’s tariff policy weakens dollar, lifts gold

Gold prices climbed to a more than three-week high on Monday as uncertainty following the US Supreme Court’s decision to overturn President Donald Trump’s global tariffs weakened the dollar and increased demand for safe-haven assets.

Spot gold rose 1.1 per cent to $5,161.64 an ounce, its highest level since 30 January. US gold futures for April delivery gained 2 per cent to $5,183.

According to Tim Waterer, an analyst at KCM Trade, the ruling added another layer of uncertainty to global markets, prompting investors to turn to gold as a defensive asset.

The Supreme Court struck down the tariffs Trump had imposed under the National Emergencies Act. The president subsequently announced that temporary tariffs would be raised from 10 to 15 per cent.

Futures on Wall Street and the dollar in Asia weakened. Analysts said the trajectory of gold prices would depend on how long uncertainty over tariffs persists and on any potential US involvement in military action against Iran. Separate data showed that core inflation in the United States rose more than expected in December, which could delay interest rate cuts.

(reuters, max)