Spot gold was up 0.5% at $5,025.19 an ounce by 10:35 am (1535 GMT), up from $5,063.49 earlier in the session. US gold futures for April delivery rose 1% to $5,045.
The US Supreme Court struck down Trump’s sweeping tariffs imposed under a national emergency law, rejecting one of his most controversial uses of presidential power in a decision with far-reaching implications for the global economy.
Trump was seen trying to reinstate the tariffs
“Primarily, the Supreme Court’s ruling removes much of the uncertainty over Trump tariffs (and his ability to impose them on a whim) which is good for stocks and bad for gold,” said Tai Wong, an independent metals trader.
“However, it’s hard to see the president packing up his toys and going home; he’ll try to reinstate tariffs using other legislation that will promote volatility. So, short-term, maybe less but medium-term uncertainty won’t deter gold bulls.”
Wall Street’s major stock indexes jumped on Friday after the Supreme Court ruling.
Data showed US economic growth slowed to a 1.4% annual rate in Q4, well below economists’ forecast of 3%, as the government shutdown and soft consumer spending hit activity.
Separately, the Personal Consumption Expenditure Index, the Federal Reserve’s favorite inflation gauge, rose 0.4% in December, on a month-over-month basis, compared with economists’ estimate of a 0.3% increase.
Gold is considered a safe-haven when there is geopolitical and economic uncertainty, performing well even when interest rates are low.
Traders still expect two 25 basis points rate cuts by the Fed this year, with the first expected in June.
Goldman Sachs said the recent slowdown in central bank gold purchases should be temporary and expects gold to reach $5,400 by the end of 2026.
Elsewhere, spot silver rose 3.4% to $81.02 an ounce. Spot platinum rose 2.8% to $2,127.73, while palladium added 2% to $1,718.08.
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