Last Updated on February 20, 2026 by Deon
The price of gold rose sharply in the days following an important US Supreme Court ruling that upheld important global tariffs which led to a retreat of the US dollar, and enhancing the role of gold as an insurance against uncertainty in policy and geopolitical risks.
This ruling, which disqualified reciprocal trade duty, brought an unpredictability element to international trade relations. Markets quickly re-evaluated possible tariff refunds as well as their impact on US trade relations – causing an increase in the value of the dollar, which provided support to bullion prices.
Dollar Weakness Bolsters Bullion Sales
Gold is often a winner in times when the US dollar is down, because those who have other currencies can find it less expensive. After the Supreme Court’s ruling that The US Dollar Index declined as investors reshaped their expectations regarding the policy of trade and the implications for economic growth.
Legal issues in connection with tariff enforcement have created uncertainties about the administration’s economic plan which prompted investors to look for security-minded investments with gold at the top of the list.
Economic Data Provides Support
In addition to trade deals and the recent US economy data the gold case is stronger than ever before.
Fourth quarter GDP growth was slowed to 1.4 percent, signalling an economy that is in transition. In the meantime, personal consumption expenses (PCE) inflation hit an unprecedented record of 3%, making it more difficult to make Federal Reserve policy decisions.
Gold is a good investment for circumstances that have a combination of slowing economic growth and persistent inflation – often known as stagflationary circumstances because investors see bullion as an insurance plan against economic declines as well as inflationary pressures.
Geopolitical Risks Remain Elevated
The demand for safe havens is still strong amid increasing geopolitical tensions, especially in light of reports of an expanding US militarization of the Middle East and fresh threats from Iran of retaliatory measures and have raised concerns about potential disruptions in supply and instability in the region.
In light of Lunar New Year holidays, physical demand on Asian market has been low. Traders are vigilant about geopolitical events in addition to economic and legal uncertainty, keeping prices stable.
Fed Uncertainty Keeps Markets Unsure
The future of the Federal Reserve remains uncertain, due to the fact that inflation pressures are still high and an uncertain economic environment could hinder their ability to maintain the stifling interest rates forever.
The Labor Market Resilience has been evident that it is resilient, with weekly claims for unemployment being below 206,000, but investors remain cautious. A split Federal Open Market Committee (FOMC) also adds to the investors’ uncertainty about the future rate decision.
Gold is averse to mixed signals, but it can be advantageous. If there is no clarity, assets that are defensive are increasingly sought-after and the demand could rise for them.
Outlook: Policy Risk Drives Momentum
The recent rise in gold is more than the result of the ruling of a court that it is a sign of an overall economic slowdown, a sticky inflation, changing trade policy shifts, and geopolitical conflicts which have developed from.
In the event that the level of uncertainty is high – be it from legal decisions, global tensions, or central bank policies gold is likely to continue to enjoy an influx of support.
Prices are currently in the record level once more and have shown its resilience in a more complex macro-economic environment.
