Gold rose nearly 2% to a three-week high today, fuelled by a fresh wave of safe-haven demand on uncertainty over US President Donald Trump's tariff plans after he vowed to raise duties following the Supreme Court's ruling against his earlier levies.
Spot gold was up 1.8% at $5,198.72 per ounce by this afternoon, having hit its highest since January 30 earlier in the session. The metal touched a record high of $5,594.82 an ounce on January 29.
U.S. gold futures GCcv1 for April delivery were up 2.7% at $5,219.
"There're a lot of economic and political problems around the world, and with markets quieter during the Lunar New Year, our expectation is that gold prices could rise sharply this week once activity picks up," said CPM Group managing partner Jeffrey Christian.
Gold hits three-week high on uncertainty over Trump tariff plans
Trump today renewed his criticism of the Supreme Court's ruling against his tariff plan, after announcing on Saturday that he would raise a temporary tariff on all US imports from 10% to 15%, the maximum allowed by law.
Mainland China, a major gold consumer, remained closed for the Lunar New Year holiday and will reopen on Tuesday.
"In a longer-term view over the next several quarters, we think the gold price will continue to rise and probably set new records," Christian said.
Data on Friday showed underlying US inflation rose more than expected in December, while separate figures indicated economic growth slowed sharply in the fourth quarter, a combination that could pressure the Federal Reserve to keep interest rates higher for longer.
Markets are awaiting signals from a slew of Fed speakers this week that could further illuminate the policy path, and any updates on developments concerning the US and Iran.
Gold, seen as a safe store of value during economic and geopolitical uncertainty, also tends to perform well when interest rates are low.
Spot silver climbed 2.8% to $86.93 an ounce, a more than two-week high.
Platinum edged 1.5% lower to $2,123.86 an ounce, while palladium lost 1.2% to $1,726.50 an ounce.
