By: Economy Middle east

Gold prices ascended to a peak not seen in over three weeks this Monday as the instability triggered by the U.S. Supreme Court’s move to invalidate a significant portion of President Donald Trump’s tariffs weighed on the dollar and steered investors toward the security of bullion. Spot gold experienced a climb of 0.98 percent to reach $5,156.9 per ounce, having touched its loftiest point since January 30 earlier in the session. Simultaneously, U.S. gold futures designated for April delivery saw a 2 percent increase, rising to $5,183. 

Within the UAE, gold rates recorded substantial growth, as 24-carat gold increased by AED6.50 to AED621.75 and 22-carat gold climbed by AED6.00 to AED575.75. Furthermore, 21-carat gold rose by AED5.75 to AED552.00, while 18-carat gold moved up by AED4.75 to AED473.00, and 14-carat gold saw an uptick of AED3.75 to reach AED369.00.

Court strikes, Trump pivots

The U.S. Supreme Court struck down Donald Trump’s sweeping tariffs that he pursued under a law meant for use in national emergencies, handing the Republican president a stinging defeat in a “landmark ruling” on Friday with major implications for the global economy. Following this judicial intervention, Trump stated his intention to “raise” a temporary tariff from 10 percent to 15 percent on U.S. imports from all countries. Consequently, Wall Street futures and the dollar retreated in Asia on Monday as the lack of clarity surrounding U.S. trade policy reinvigorated the “sell America” trade.

Diplomacy and market volatility

On the diplomatic front, Iran has “indicated” it is prepared to make concessions on its nuclear programme in talks with the U.S. in return for the lifting of sanctions and recognition of its right to enrich uranium, as it seeks to avert a U.S. attack. Meanwhile, economic indicators released on Friday revealed that underlying U.S. inflation grew beyond expectations in December, with various signals suggesting a continued acceleration through January. This trend reinforces the belief that the Federal Reserve will likely delay any interest rate cuts until at least June. In the broader precious metals market, spot silver jumped 2.32 percent to $86.91 per ounce, marking a high of more than two weeks. Additionally, spot platinum rose slightly by 0.09 percent to $2,159.00 per ounce, whereas palladium experienced a decline of 0.86 percent, falling to $1,728.00.