Gold prices climbed to their highest level in over three weeks on Monday, driven by a weakening U.S. Dollar. The decline in the dollar follows a Friday ruling by the U.S. Supreme Court that struck down a significant portion of President Donald Trump's tariffs. Additionally, escalating tensions between the United States and Iran continue to bolster the metal's appeal as a safe haven.
اضافة اعلان
Market Figures
Spot Gold: Rose 1.2% to $5,163.60 per ounce by 02:10 GMT, marking its highest point in over three weeks.
U.S. Gold Futures (April delivery): Increased 2% to $5,184.90.
Silver: Jumped 3.1% to $87.10 per ounce, a two-week high.
Platinum: Rose 1.2% to $2,182.60.
Palladium: Gained 0.5% to $1,753.75.
Economic Drivers and Policy Impact
The dollar eased as traders viewed the Supreme Court’s decision to void most of Trump’s tariffs as a boost for global growth. However, market volatility remained due to the risk of conflict in the Middle East.
Traders noted that mainland Chinese markets are closed for the Lunar New Year holiday, leading to lower trading volumes and potential price fluctuations. Trading in China is set to resume on Tuesday.
The court ruling has limited President Trump’s ability to use tariffs as a spontaneous threat, though it has not entirely eliminated the uncertainty felt by global trading partners. Despite this, U.S. Trade Representative Jamieson Greer stated yesterday that no countries with existing trade agreements have announced plans to withdraw following the verdict.
Growth and Interest Rates
U.S. economic growth slowed more than expected in the last quarter, with government spending seeing its sharpest drop since 1972 due to last year’s shutdown. Nevertheless, stable consumer and business spending underscore economic resilience. According to the CME FedWatch Tool, markets currently anticipate the Federal Reserve will implement three 25-basis-point interest rate cuts this year.
Geopolitical Context
On the diplomatic front, Iran has indicated a willingness to make concessions regarding its nuclear program in talks with the U.S. In exchange, Tehran seeks the lifting of sanctions and recognition of its right to enrich uranium, in an effort to avert a potential American military strike.
— Reuters
