Gold Rally Extends as Tariff Uncertainty Pressures USD

Gold advanced to its highest level in three weeks, trading near $5,136 as renewed uncertainty around US trade policy weighed on the dollar and revived safe-haven demand. The move followed a US Supreme Court ruling that struck down sweeping tariffs imposed under emergency powers, injecting fresh volatility into global markets and pressuring the greenback.

Subsequent signals of temporary tariff adjustments have added further ambiguity to the trade outlook, reinforcing defensive positioning in precious metals. Dollar softness has been a key driver behind bullion’s recovery.

However, the macro backdrop remains mixed. Recent inflation data showed underlying price pressures remain elevated, tempering expectations for an early Federal Reserve rate cut. Markets continue to price the first easing move around mid-year, but persistent inflation and firm yields could cap gold’s near-term momentum.

Technically, gold remains within a broader uptrend above the $5,000 level. A sustained break above the $5,200 resistance zone would strengthen bullish momentum and bring the $5,400–$5,600 region back into focus. Failure to clear that area may result in continued consolidation as traders await clearer signals from inflation data and US trade developments.

Read more on how tariff uncertainty, inflation trends and dollar momentum could shape gold’s next move.