Gold hits three-week high on uncertainty over Trump tariff plans

Spot gold was up 0.9percent at USD5,150.59 per ounce by 09:08 a.m. ET (1408 GMT), having hit its highest since January 30 earlier in the session. The metal touched a record high of USD5,594.82 an ounce on January 29.

US gold futures for April delivery were up 1.8percent at USD5,171.20. “There’re a lot of economic and political problems around the world, and with markets quieter during the Lunar New Year, our expectation is that gold prices could rise sharply this week once activity picks up,” said CPM Group managing partner Jeffrey Christian.

President Trump on Monday renewed his criticism of the Supreme Court’s ruling against his tariff plan, after announcing on Saturday that he would raise a temporary tariff on all US imports from 10percent to 15percent, the maximum allowed by law.

Mainland China, a major gold consumer, remained closed for the Lunar New Year holiday and will reopen on Tuesday. “In a longer term view over the next several quarters, we think the gold price will continue to rise and probably set new records,” Christian said.

Data on Friday showed underlying US inflation rose more than expected in December, while separate figures indicated economic growth slowed sharply in the fourth quarter, a combination that could pressure the Federal Reserve to keep interest rates higher for longer.

Markets are awaiting signals from a slew of Fed speakers this week that could further illuminate the policy path, and any updates on developments concerning the US and Iran. Gold, seen as a safe store of value during economic and geopolitical uncertainty, also tends to perform well when interest rates are low.

Spot silver climbed 2.2percent to USD86.42 an ounce, a more than two-week high. Platinum edged 0.3percent higher to USD2,150.75 an ounce, while palladium added 0.4percent to USD1,755.50 an ounce.