Gold slips, US equities gain as Supreme Court blocks Trump’s tariffs

WEB DESK: Gold prices eased some of their earlier gains on Friday after the US Supreme Court struck down former President Donald Trump’s sweeping global tariffs, though the safe-haven metal remained supported by weaker-than-expected US economic data.

Spot gold was up 0.5 per cent at $5,025.19 an ounce by mid-morning, after earlier touching $5,063.49. US gold futures for April delivery were up 1 per cent at $5,045.

The Supreme Court ruling invalidated Trump’s tariffs imposed under a law meant for national emergencies, rejecting one of the former president’s most controversial exercises of executive authority. Analysts said the decision reduced immediate uncertainty over tariffs but warned that Trump could attempt to re-impose them under other statutes, which could continue to influence market volatility.

“Prima facie, the Supreme Court ruling removes uncertainty on most of the Trump tariffs, which is positive for stocks and negative for gold,” said Tai Wong, independent metals trader. “However, it is likely the former president will seek alternative ways to reinstate tariffs, so medium-term uncertainty for gold remains.”

Wall Street’s main indexes rose sharply following the ruling, reflecting easing trade-related fears.

Economic data also weighed on markets. US GDP growth slowed sharply to an annualized 1.4 per cent in the fourth quarter of 2025, below forecasts of 3 per cent, as government shutdowns and weaker consumer spending hit activity. Meanwhile, the Personal Consumption Expenditure (PCE) index, the Federal Reserve’s preferred inflation measure, rose 0.4 per cent in December, above the expected 0.3 per cent.

Gold, a traditional safe-haven asset during periods of economic and geopolitical uncertainty, also benefits from low interest rates. Analysts said despite the short-term dip following the court ruling, the medium-term outlook for gold remained positive amid continuing global uncertainties.

Meanwhile, US stocks edged higher on Friday after the Supreme Court struck down Trump’s sweeping tariffs, offering relief to investors following weaker-than-expected economic data earlier in the day.

The court ruled against Trump’s global tariffs, which had been imposed under a federal law designed for national emergencies. His April 2 “Liberation Day” levies included a baseline duty of 10 per cent on all imports, with additional duties ranging from 15 to 50 per cent on many countries, some of which were later renegotiated and reduced.

While the stock market has recovered from last year’s tariff-induced selloff, companies and consumers continue to deal with the fallout from the levies.

Shares of US toymakers Hasbro and Mattel, online furniture retailer Wayfair, Pottery Barn owner Williams-Sonoma, and luxury furniture retailer RH – all affected by the tariffs – climbed after the verdict.

Automakers saw mixed gains, with General Motors recouping some losses and ending slightly lower, while Ford Motor rose 1 per cent.

“Markets are responding with a greater risk appetite for equities because we finally got something resolved,” said Todd Schoenberger, chief investment officer at CrossCheck Management in Washington DC. “The only question now becomes a rebate issue, which could have a negative impact on the economy.”

Thousands of companies worldwide have filed lawsuits challenging Trump’s tariffs and seeking refunds. Economists at the Penn-Wharton Budget Model estimate more than $175 billion in US tariff collections could require repayment.

At 10:23 a.m., the Dow Jones Industrial Average rose 203.43 points, or 0.36 per cent, to 49,571.90, the S&P 500 gained 30.53 points, or 0.44 per cent, to 6,892.68, and the Nasdaq Composite added 140.10 points, or 0.62 per cent, to 22,822.83.

US stocks had fallen earlier after data showed economic growth slowed sharply in Q4, while inflation picked up in December. Traders remain largely confident that the Federal Reserve will deliver its next interest-rate cut in June.

Seven of the 11 S&P sectors were trading higher, with communication services leading gains, boosted by a 2.7 per cent rise in Alphabet.

Technology stocks faced pressure in recent months over concerns about high valuations and uncertain returns from massive AI investments. Sectors ranging from software to real estate were hit last week as new AI models raised concerns about disruption.

Other movers included Blue Owl Capital, down 1.6 per cent after falling 5.9 per cent in the previous session, and Akamai Technologies, which slid 9.8 per cent after forecasting lower-than-expected first-quarter profits.

Advancing stocks outnumbered decliners by a 1.69-to-1 ratio on the NYSE and 1.34-to-1 on the Nasdaq. The S&P 500 recorded 26 new 52-week highs and four lows, while the Nasdaq Composite posted 53 new highs and 69 new lows.