Gold Surges Past $5K as Trump Tariff Loss Sparks Trade Deal Uncertainty
Gold experienced an increase as uncertainty loomed regarding the future of trade agreements negotiated with the US, following the Supreme Court’s limitation on President Donald Trump’s tariff authority, which left markets in a state of unease. Bullion surged by as much as 1.3 percent, reaching levels above $5,170 an ounce. On Saturday, Trump announced his intention to implement a global tariff of 15 percent in order to maintain protective trade measures, following the Supreme Court’s decision that ruled against his use of emergency powers to establish reciprocal duties. The dollar’s decline after the decision is resulting in lower prices for the metal for numerous buyers.
The court ruling has raised questions about the agreements the US has established with key trading partners. The European Parliament’s trade chief announced plans to propose a delay in the ratification of an agreement with Washington until further clarity is achieved. Meanwhile, Indian officials have decided to postpone their trip to the US, and a member of Japan’s ruling party described the situation as “a real mess.” The prevailing uncertainty is fueling gold’s resurgence following a sharp decline at the beginning of the month.
The precious metal has experienced a rally over the past three weeks, as numerous long-term factors — including increased geopolitical tensions and investor caution regarding sovereign bonds and currencies — continue to provide support. Gold increased by 0.7 percent to $5,144.72 an ounce as of 8:25 a.m. in Singapore. The Dollar Spot Index fell by 0.2 percent, following a similar decline of 0.2 percent on Friday. Silver rose by 2.2 percent, reaching a price of $86.47. Platinum and palladium also saw an increase.
