Spot Gold surged to a fresh three-week peak above $5,170/oz. on Monday, as uncertainty stemming from the US Supreme Court’s decision to strike down US President Donald Trump’s sweeping tariffs prompted investors to flock to safe-haven assets.
The US Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act were unlawful without approval from Congress. The decision has prompted a reassessment of US trade authority and its implications for global trade flows.
In response to the Supreme Court decision, Trump indicated an intention to push forward with a new 15% global tariff using different trade statutes, keeping uncertainty around US trade rules elevated.
US Treasury Secretary Scott Bessent, along with other White House officials, signaled that the administration would seek to maintain as many existing tariffs as possible by shifting to alternative legal justifications.
“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,” Tim Waterer, chief market analyst at KCM Trade, was quoted as saying by Reuters.
“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 added.
Iran has indicated it may offer concessions in nuclear negotiations with the US in exchange for sanctions relief and recognition of its right to enrich uranium, as it seeks to avoid a potential attack.
Spot Gold was last up 0.40% on the day to trade at $5,128.44 per troy ounce.
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