Today Fundamental Analysis: Gold Surges Above $5,150 After U.S. Supreme Court Blocks Trump’s Tariffs

Gold rose above $5,100 for the first time since the end of January and extended gains past $5,150 at the start of the week, marking a fourth straight day of advances. The rally is driven by renewed trade war fears and escalating Middle East tensions, boosting safe haven demand.

President Trump introduced a new 15% global tariff framework following a Supreme Court ruling against his previous tariffs, raising concerns about retaliation and global supply chain disruptions.

Last week, U.S. inflation data showed Personal Consumption Expenditure (PCE) rising 2.9% year over year and core PCE at 3.0%, reinforcing expectations that the Federal Reserve will likely hold rates steady in March, though markets still anticipate two rate cuts later this year. A weaker Q4 GDP reading of 1.4%, along with ongoing trade uncertainty and a softer U.S. dollar, provided additional support for gold. Rising risks of military conflict between the U.S. and Iran, ahead of renewed nuclear talks in Geneva, further underpin the precious metal’s strength.

On Friday, U.S. stocks rallied after the court ruling, with the S&P 500, Nasdaq 100, and Dow Jones Industrial Average all closing higher, as investors weighed relief from tariffs against ongoing economic concerns.

However, U.S. stock futures fell sharply in early trading today after Trump announcement regarding the new tariffs. Dow Jones futures dropped 0.6%, S&P 500 and Nasdaq 100 futures fell 0.6% and nearly 0.8%, respectively. Oil prices declined, with Brent crude and U.S. crude both lower.

In the crypto market, Bitcoin fell more than 3% below $65,000, reflecting broader risk aversion. Oil prices reversed earlier gains, with Brent crude and West Texas Intermediate both trading lower.

Additionally, Asian markets mostly rose Monday despite renewed tariff uncertainty. South Korea’s Kospi surged 1.7% to a record high, with strong gains in major chipmakers, while Hong Kong’s Hang Seng Index climbed over 2%.