Gold Balances Amid U.S. Tariff Drama and Economic Slowdown

Gold prices experienced slight adjustments as investors reacted to the U.S. Supreme Court's decision overturning Trump's tariff plan, while weaker U.S. GDP data supported the metal. The court's decision impacts global economic dynamics, causing fluctuations in gold, which remains a preferred asset amidst ongoing economic uncertainty.

Investors witnessed a slight adjustment in gold prices on Friday following the U.S. Supreme Court's decision to invalidate President Trump's expansive tariff strategy. Despite the setback, gold found support as U.S. GDP data underperformed expectations. By mid-morning trading, spot gold stood at $5,025.19 an ounce, having previously reached $5,063.49.

The Supreme Court's ruling curtails Trump's use of tariffs under emergency powers, a move watched globally for its economic implications. Independent metals trader Tai Wong noted the ruling removes some uncertainty affecting stocks and gold. However, Wong anticipates Trump may seek alternative methods to apply tariffs, potentially increasing market volatility.

U.S. stock indexes climbed after the court's decision, despite economic growth slowing sharply in Q4. The Personal Consumption Expenditure index rose slightly, aligning gold's appeal with ongoing geopolitical and economic uncertainties alongside expectations of Federal Reserve interest rate cuts, which may boost gold's value longer-term.

(With inputs from agencies.)