Gold extended gains early Monday, with spot prices topping the $5100 an ounce mark, on haven demand after U.S. President Donald Trump issued an ultimatum to Iran and fresh tariff uncertainty impacts trade policy.
On Friday, the yellow metal rose and the dollar fell after the Supreme Court ruled against Trump’s sweeping tariffs, finding that he had exceeded his authority. The president responded by announcing a blanket 15% levy on imports — the maximum level allowed under the law. A weaker dollar is usually supportive of precious metals, which become a more attractive investment to holders of other currencies.
The president is considering a targeted strike against Iran, followed by a larger attack, with negotiators set to meet later this week in Switzerland, The New York Times reported. Gold is a traditional hedge against geopolitical and economic uncertainty. Metals prices also extended a rally from Friday following the release of a key U.S. inflation indicator.
April gold futures rose 0.7% last week to settle at $5,080.90 an ounce on Comex after gaining 1.7% Friday. Bullion surged 9.3% in January after rising 2% in December and gaining 6.5% in November. It rallied 64% last year. The April contract is currently up $137.10 (+2.70%) an ounce to $5218 and the DG spot price is $5111.00.
Data released Friday showed fourth-quarter U.S. GDP badly missed analysts’ estimates, coming in at an annual rate of 1.4%, compared with a consensus estimate for a 2.5% gain. The economic indicator may encourage the Federal Reserve to hold interest rates unchanged again at the next policy meeting. Consumer spending also slowed. But the central bank’s favorite inflation measure, the personal consumption expenditures price index, came in around expectations for January.
The central bank kept interest rates unchanged last month after three previous rate cuts. Minutes of the January Fed meeting, which came out Wednesday, showed that several Fed officials anticipate additional rate cuts if inflation drops, though others project holding rates stead for “some time.” Lower interest rates are considered bullish for gold, making the yellow metal a more attractive alternate investment.
Almost 96% of investors are betting that the Fed will keep interest rates unchanged again in March, according to figures tracked by the CME FedWatch Tool. About 4% expect another 25 basis point cut. The Fed reduced interest rates for a third consecutive time in December to 3.50% to 3.75%. The central bank began raising interest rates in March 2022 to fight inflation, ultimately imposing increases of by 5.25 percentage points before beginning rate cuts in 2024.
March silver futures rose 5.6% last week to settle at $82.34 an ounce on Comex, after the front-month contract added 6.1% Friday. It touched a record above $115 in January. Silver gained 11% last month after climbing 24% in December and increasing 19% in November. It rose 141% last year. The March contract is currently up $4.872 (+5.92%) an ounce to $87.215 and the DG spot price is currently $84.62.
Spot palladium increased 2.7% last week to $1,766.00 an ounce after advancing 4.6% Friday. Palladium rose 2.4% in January after increasing 11% in December and adding 0.5% in November. Palladium gained 74% last year. Currently, the DG spot price is up $90.50 an ounce to $1775.50.
Spot platinum rose 3.6% last week to $2,164.80 an ounce after increasing 4.9% Friday. It gained 1.4% in January after surging 22% in December and climbing 4.7% in November. Platinum increased 122% in 2025. The DG spot price is currently up $102.70 an ounce to $2168.40.
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