Gold prices rose amid uncertainty over what will happen to trade deals negotiated with the United States, after the Supreme Court restricted President Donald Trump's tariff powers, rattling markets.
Gold prices rose as much as 1.3% to surpass $5,170 an ounce. On Saturday, Trump said he would impose a 15% global tariff to maintain protectionist trade measures, after the Supreme Court ruled against his use of emergency powers to set retaliatory tariffs.
The decline in the value of the dollar following this decision led to a decrease in the price of the metal for many buyers.
Doubts about fee deals
The court ruling raised doubts about deals negotiated by the United States with major trading partners.
The European Parliament's trade chief said he would propose postponing ratification of an agreement with Washington until there was more clarity, while Indian officials postponed a trip to the United States, and a member of Japan's ruling party described the situation as a real mess.
Uncertainty is providing further impetus to gold's recovery after a sharp drop at the start of the month. The precious metal has risen over the past three weeks, as several long-term supportive factors remain in place, including heightened geopolitical tensions and investor caution towards sovereign bonds and currencies.
Gold rose 0.7% to $5,144.72 an ounce as of 8:25 a.m. Singapore time. The Bloomberg Dollar Spot Index fell 0.2%, after declining 0.2% on Friday. Silver also climbed 2.2% to $86.47, and platinum and palladium prices rose as well.
