Gold Breaks $5,100, Trump Tariffs & Dollar Weakness Lead
Gold prices strengthened and held above $5,100/oz on Monday (February 23rd) as the US dollar weakened and uncertainty over President Donald Trump's tariff policies again rocked the market.
In early trading, gold futures in New York rose around 1.5% to $5,155.10 per troy ounce, while the US dollar index fell 0.3% to 97.51, making gold more attractive to foreign buyers.
Sentiment was boosted by Trump's statement that he would temporarily increase global import tariffs to 15% from 10%, after the Supreme Court declared most of the previous tariff regime invalid. The weakening dollar following this development also boosted investor interest in precious metals, as gold tends to strengthen when the US dollar declines.
Analysts believe the market is also anticipating the knock-on effects of the court ruling, including the possibility that the US government will have to refund import duties already paid by importers under the canceled tariff scheme. The prospect of this refund adds to fiscal uncertainty and strengthens investors' appetite for defensive assets.
Beyond tariffs, the market is also closely monitoring developments in the US-Iran negotiations, which remain unclear. High geopolitical risks have maintained demand for safe havens, allowing gold to remain supported despite potentially volatile daily movements.
Source: Newsmaker.id
