The US Supreme Court struck down Trump’s sweeping tariffs, imposed under a law intended for national emergencies, and rejected one of his most controversial uses of presidential power in a decision with broad implications for the global economy.SEEN TRUMP TRYING TO RESET RATES
“On the face of it, the Supreme Court’s ruling removes uncertainty about most 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 is hard to see the president picking up his toys and going home; he will try to reimpose rates using other laws that will promote volatility. So in the short term, maybe lower, but medium term uncertainty will not deter the gold bulls.”
Wall Street’s major stock indexes rose on Friday following the Supreme Court’s ruling. Data shows U.S. economic growth slowed sharply in the fourth quarter to an annualized 1.4%, well below economists’ forecast of 3%, after the government shutdown and softer consumer spending hit activity.
In addition, the personal consumption expenditure index, the Federal Reserve’s preferred inflation gauge, rose 0.4% month-on-month in December, compared with economists’ estimate of a 0.3% increase.
Gold, which is considered a safe haven in times of geopolitical and economic uncertainty, also tends to do well when interest rates are low.
Traders still expect two 25 basis point rate cuts from the Fed this year, with the first expected in June.
Goldman Sachs said a recent slowdown in gold purchases by central banks should be temporary and expects gold to rise towards $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 rose 2% to $1,718.08.
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