Bullion climbed as much as 1.3 per cent to above $5,170 an ounce. Trump said Saturday he would impose a global tariff of 15 per cent to preserve protective trade measures
By Yihui Xie
Gold rose as uncertainty over what would happen to trade deals negotiated with the US, after the Supreme Court restrained President Donald Trump’s tariff powers, unsettled markets.
Bullion climbed as much as 1.3 per cent to above $5,170 an ounce. Trump said Saturday he would impose a global tariff of 15 per cent to preserve protective trade measures after the Supreme Court ruled against his use of emergency powers to set reciprocal duties. A weakening of the dollar following the decision is making the metal cheaper for many buyers.
The court ruling has cast doubt over deals the US has negotiated with major trading partners. The European Parliament’s trade chief said he’ll propose delaying ratification of an agreement with Washington until there’s more clarity, Indian officials will postpone a trip to the US, while a member of Japan’s ruling party called the situation a “a real mess.”
The uncertainty is giving more impetus to gold’s recovery from a sudden rout at the turn of the month. The precious metal has rallied for the last three weeks as many of the long-term factors — including heightened geopolitical tensions and investor wariness of sovereign bonds and currencies – that have supported it remained intact.
Gold rose 0.7 per cent to $5,144.72 an ounce as of 8:25 a.m. in Singapore. The Bloomberg Dollar Spot Index dropped 0.2 per cent after declining 0.2 per cent on Friday. Silver climbed 2.2 per cent to $86.47. Platinum and palladium also advanced.
