Gold prices rose as uncertainty surrounding the fate of trade deals that the US has negotiated shook the market, after the Supreme Court restricted President Donald Trump's right to impose tariffs.
Gold prices at one point rose by 1.3%, exceeding the $5.170/ounce mark. Mr. Trump said on Saturday that he would impose a 15% global tariff to maintain trade protection measures, after the Supreme Court rejected his use of emergency power to set " reciprocal" tariffs.
The court ruling cast a shadow of doubt over the agreements that the US is negotiating with major trading partners. The head of trade of the European Parliament said he would propose delaying the ratification of the agreement with Washington until further clarification. Indian officials decided to postpone their visit to the US, while a member of the ruling Japanese parliament described the current situation as "a real mess".
This uncertainty continues to fuel the recovery momentum of gold prices after a strong sell-off at the time of the month-turn. Precious metals have increased continuously in the past three weeks, as many long-term supporting factors remain, including increased geopolitical tensions and investor caution about government bonds as well as legal tenders.
As of 8:25 am in Singapore, spot gold prices rose 0.7% to $5,144.72/ounce. The Bloomberg Dollar Spot index fell 0.2%, after also falling 0.2% in Friday's session. Silver prices rose 2.2% to $86.47/ounce. Platinum and palladium prices also simultaneously went up.
