GOLD extended a run of gains on Monday, rising towards $5,180 an ounce as uncertainty over US trade policy rattled markets and weighed on the dollar.
Bullion climbed as much as 1.4% after President Donald Trump announced a 15% global tariff at the weekend, following a Supreme Court ruling that invalidated his earlier use of emergency powers to set duties, said Bloomberg News.
The replacement measure is permitted to last no longer than 150 days and is tied to cases of fundamental international payments imbalance, the newswire said. A softer dollar added to gold’s appeal by making the metal cheaper for buyers using other currencies, it said.
The court ruling has also cast doubt over trade agreements the US had negotiated with major partners. The European Union is reported to be considering freezing ratification of its deal with Washington, Indian officials have postponed a planned visit to the US, and a Japanese ruling party member described the situation as “a real mess.”
“There are enough structural factors in favour of gold in the medium term,” said Vasu Menon, strategist at Oversea-Chinese Banking Corp. “In the short term, however, expect gold prices to be volatile after the sharp gains in recent months given still-unfolding developments with US trade policy, and the situation in Iran.”
Traders are also watching a tense standoff between Washington and Tehran, with the US having assembled a significant military presence in the region despite ongoing nuclear talks.
