TLDR
- Trump raised global tariffs to 15% after the Supreme Court blocked his emergency tariff powers
- Gold rose for a fourth straight session, hitting $5,170 on U.S. futures
- Trade deals with the EU, India, and Japan are now in doubt
- A slowing U.S. economy and sticky inflation are pushing investors toward safe havens
- Silver climbed 2.3% to $86.56/oz; hedge fund gold positions are at a near one-year low
Gold climbed for a fourth straight session on Monday after President Trump announced a new 15% global tariff, rattling markets and pushing investors toward safe-haven assets.
U.S. Gold Futures rose 1.8% to $5,170.19. Spot gold was up 0.8% at $5,148.66 an ounce as of Monday morning.
The move followed a Supreme Court ruling that struck down Trump’s use of emergency powers to set import duties. Trump then turned to Section 122 of U.S. trade law, first announcing a 10% tariff, then raising it to 15% — the maximum allowed under that statute.
Trade Deals Now in Doubt
The court ruling threw several trade agreements into uncertainty. The EU’s trade chief said he would propose delaying ratification of a deal with Washington until there is more clarity on U.S. policy.
Indian officials postponed a planned trip to the U.S. A member of Japan’s ruling party described the situation as “a real mess.”
The uncertainty pushed investors away from risk assets. Money moved into gold and U.S. Treasuries as traders waited for more clarity on tariff scope, duration, and any potential legal challenges.
A weaker dollar added fuel to gold’s rise. The Bloomberg Dollar Spot Index fell 0.2% on Monday, following the same drop on Friday. A lower dollar makes gold cheaper for buyers holding other currencies.
Weak Economy and High Inflation Support Gold
U.S. economic data released last week gave investors more reason to hold gold. GDP grew at just 1.4% annualized in Q4, a sharp drop from the prior quarter.
At the same time, the Fed’s preferred inflation measure — the PCE index — showed prices rising 2.9% year-on-year in December. The core reading came in near 3.0%, still well above the Fed’s 2% target.
Slowing growth paired with elevated inflation is a combination that historically supports gold as both a store of value and an economic hedge.
Geopolitical tension between the U.S. and Iran also kept buyers active. Talks over Iran’s nuclear program are ongoing, but the U.S. has built up a large military presence in the region, keeping risk sentiment cautious.
Other Metals
Silver rose 2.3% to $86.56 per ounce. Platinum gained 0.3% to $2,164.60/oz. Copper futures were mostly flat.
CFTC data shows hedge fund net-long positions in gold futures have fallen to their lowest level in nearly a year, suggesting room remains for further buying pressure.
Spot gold was last recorded at $5,134.16 as of Monday afternoon Singapore time, with analysts warning that short-term volatility is likely as U.S. trade policy continues to develop.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
