Gold prices have risen amid uncertainty surrounding international trade deals negotiated with the United States, following a Supreme Court decision that restrained President Donald Trump’s tariff powers. Bullion climbed as much as 1.3 per cent, reaching above $US5170 an ounce. Trump stated his intention to impose a global tariff of 15 per cent to maintain protective trade measures after the court ruled against his ability to use emergency powers to set reciprocal duties. The weakening of the US dollar following the decision is also contributing to gold becoming more affordable for international buyers.
The Supreme Court ruling has introduced doubt regarding the trade deals the US has negotiated with key trading partners. The European parliament’s trade chief indicated they would propose delaying ratification of an agreement with Washington until the situation becomes clearer. Indian officials are reportedly postponing a planned trip to the US, while a member of Japan’s ruling party described the situation as “a real mess”.
This uncertainty is providing further momentum to gold’s recovery following a sharp decline earlier in the month. The precious metal has experienced a rally over the past three weeks. Long-term factors that have supported gold, including heightened geopolitical tensions and investor caution regarding sovereign bonds and currencies, continue to persist. Gold was up 0.7 per cent to $US5144.72 an ounce as of 8.25am in Singapore (11.25am AEDT).
