Gold pares gains after U.S. Supreme Court strikes down Trump tariffs

Gold bars are shown stacked in a vault at the United States Mint in West Point, N.Y. (AP Photo/Mike Groll, File)

Gold prices trimmed some gains on Friday as investors assessed the U.S. Supreme Court ruling striking down U.S. President Donald Trump’s broad tariff plan, although the safe-haven metal remained supported by weaker-than-expected U.S. GDP data.

Spot gold was up 0.5 per cent at US$5,025.19 an ounce by 10:35 a.m. (1535 GMT), after rising as much as $5,063.49 earlier in the session. U.S. gold futures for April delivery were up one per cent at $5,045.

The U.S. Supreme Court struck down Trump’s sweeping tariffs, imposed under a law intended for national emergencies, rejecting one of his most controversial uses of presidential power in a decision with broad implications for the global economy.

Trump seen trying to re-establish tariffs

“Prima facie, the Supreme Court ruling removes uncertainty on most of the 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’s hard to see the President collecting his toys and going home; he will try to re-establish tariffs using other statutes which will promote volatility. So, short term, perhaps lower but medium term uncertainty won’t deter gold bulls.”

Wall Street’s main stock indexes jumped on Friday after the Supreme Court ruling.

Data showed U.S. economic growth slowed sharply to a 1.4% annualized rate in Q4, well below economists’ forecast of 3%, as the government shutdown and softer consumer spending hit activity.

Separately, the Personal Consumption Expenditure index, the Federal Reserve’s preferred inflation gauge, rose 0.4 per cent in December, on a month-over-month basis, compared with economists’ estimate of a 0.3 per cent rise.

Gold, considered a safe-haven asset when there is geopolitical and economic uncertainty, also tends to do well when interest rates are low.

Traders still expect two 25 basis points rate cuts by the Fed this year, with the first expected in June.

Goldman Sachs said a recent slowdown in central bank gold buying should be temporary and expects gold to climb toward $5,400 by end-2026.

Elsewhere, spot silver gained 3.4 per cent to $81.02 an ounce. Spot platinum rose 2.8 per cent to $2,127.73, while palladium added two per cent to $1,718.08.

(Reporting by Anmol Choubey in Bengaluru; Editing by Jane Merriman and David Holmes)