Gold Hits 3-Week High on Tariffs and Softer Dollar

Key Moments

Safe-Haven Inflows Push Gold to Three-Week High

Gold prices moved sharply higher on Monday, with investors shifting into defensive assets amid renewed uncertainty around US trade policy, geopolitical tensions, and the path of interest rates.

Spot gold gained 0.93% to $5,151.44 per ounce after earlier rising to its strongest level since January 30. US gold futures for April delivery advanced 1.8% to $5,173.81.

The upswing coincided with a weakening US dollar and softer risk sentiment after a major US court decision on tariffs and subsequent policy changes from Washington. Wall Street futures and the US currency retreated in Asian trading, reviving what market participants described as a “sell America” trade.

Tariff Ruling Intensifies Market Uncertainty

Gold’s latest rally followed a landmark US Supreme Court decision that struck down broad tariffs imposed under emergency powers legislation, injecting a new layer of uncertainty into global trade and financial markets.

“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, chief market analyst at KCM Trade, in a Reuters report.

Despite the ruling, President Donald Trump said he would raise a temporary tariff from 10% to 15% on imports from all countries. The shifting policy stance weighed on the dollar and supported renewed inflows into bullion.

Waterer pointed to unresolved trade and geopolitical risks as critical for gold’s trajectory. “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,” he said.

Iran has indicated it may offer concessions in nuclear negotiations with the United States in exchange for sanctions relief and recognition of its right to enrich uranium, as it seeks to avoid a potential attack.

Inflation Data and Fed Outlook Underpin Bullion

Macroeconomic releases also supported the metal’s appeal. Recent US inflation data showed underlying price pressures rising more than expected in December, with indications of further acceleration in January.

This pattern reinforced expectations that the Federal Reserve may postpone interest-rate cuts until at least June. While higher rates typically weigh on non-yielding assets such as gold, ongoing policy uncertainty and worries about slower growth have instead bolstered safe-haven demand.

Technical Picture: Key Levels in Focus

Technical factors contributed to the bullish tone as well. Pepperstone research strategist Dilin Wu highlighted in a WSJ report that gold recently moved above important price thresholds near $5,100.

“This indicates that the previous key resistance has now become a short-term support, opening up further upside potential,” Wu said.

Wu added that gold is trading above $5,150 per ounce and may face resistance around $5,200. “Overall, the bullish advantage is clear, though traders should remain alert to short-term volatility,” Wu said.

Performance Across Precious Metals

The advance in gold was accompanied by gains in other precious metals, with the exception of palladium.

The combination of legal developments on tariffs, evolving US trade policy, firming inflation readings, and persistent geopolitical risks kept investors focused on gold and select precious metals as core safe-haven allocations.