Gold Shines Amidst Tariff Uncertainty

Gold prices ascended to a three-week apex on Monday, fueled by market instability following the U.S. Supreme Court's decision to annul President Donald Trump's extensive tariffs.

This legal ruling incited pressure on the dollar while prompting investors to gravitate towards the relative safety of gold, driving spot prices up by 1.1% to $5,161.64 per ounce by early Monday morning GMT, marking the highest point since January 30.

In response to this landmark ruling, Trump announced an increase in a temporary tariff from 10% to 15% on U.S. imports from all countries. The ruling has reverberated through global markets, leading Wall Street futures and the dollar to tumble in early Asian trading, as the landscape of the 'sell America' trade resurfaced.

Market analyst Tim Waterer noted that gold's future trajectory may hinge on the longevity of tariff-related uncertainties, as well as the potential for U.S. military engagement with Iran.

Meanwhile, data revealed that U.S. inflation rose more than anticipated in December, with projections indicating further acceleration in January, potentially forestalling Federal Reserve rate cuts until at least June. Other precious metals also saw movement, with spot silver climbing 3.1% and platinum inching slightly higher at 0.1%.