Supreme Court decision shifts market tone
Gold prices eased from session highs on Friday but remained firmly elevated as investors weighed a major legal setback for President Donald Trump’s tariff agenda alongside signs of slowing U.S. economic momentum. Spot gold traded 0.5 percent higher at 5,025.19 dollars an ounce after earlier touching 5,063.49 dollars. April gold futures climbed 1 percent to 5,045 dollars.
The U.S. Supreme Court invalidated a series of broad based tariffs introduced under emergency powers, curbing one of the administration’s most contentious trade measures. The ruling has broad implications for global commerce and executive authority, and prompted a sharp rally in U.S. equities.
Market participants said the decision reduced immediate policy uncertainty, a factor that typically diminishes demand for defensive assets such as gold. However, traders cautioned that volatility may persist if the White House seeks alternative legal avenues to restore trade barriers.
Economic data reinforces safe-haven demand
Support for bullion also came from softer macroeconomic figures. U.S. gross domestic product expanded at an annualized rate of 1.4 percent in the fourth quarter, well below the 3 percent pace economists had forecast. The slowdown was attributed in part to the impact of a previous government shutdown and more subdued consumer spending.
Inflation data added another layer of complexity. The Personal Consumption Expenditure index, the Federal Reserve’s preferred gauge, increased 0.4 percent in December compared with expectations of a 0.3 percent rise. The modest acceleration reinforced the delicate balance facing policymakers as they navigate growth risks and lingering price pressures.
Gold, often viewed as a store of value during periods of economic and political instability, has also benefited from expectations that U.S. interest rates may fall later this year.
Rate cut expectations underpin outlook
Investors continue to price in two quarter point rate reductions by the Federal Reserve in the coming months, with the first widely anticipated in June. Lower borrowing costs typically enhance the appeal of non yielding assets such as gold by reducing the opportunity cost of holding them.
Goldman Sachs said a recent moderation in central bank purchases is likely temporary and maintained a bullish longer term outlook, projecting prices could approach 5,400 dollars per ounce by the end of 2026.
Broader precious metals advance
The rally extended beyond gold. Spot silver surged 3.4 percent to 81.02 dollars an ounce, while platinum advanced 2.8 percent to 2,127.73 dollars. Palladium gained 2 percent to trade at 1,718.08 dollars.
Despite intraday fluctuations, bullion’s resilience underscores the interplay between policy shifts, macroeconomic indicators and investor sentiment. As legal challenges reshape the trade landscape and economic data signal cooling momentum, precious metals remain a focal point for investors seeking stability amid shifting financial currents.
