Gold prices rise for third straight week: US Supreme Court tariff verdict, weak US GDP boost safe-haven demand

Gold prices bounced back sharply this week amid strong demand for the safe haven assets amid rising geopolitical tensions, disappointing Q4 US GDP data and landmark US Supreme Court ruling against global tariffs, which triggered high volatility in global markets.

In the US markets, Gold futures surged 1.67% on Friday to close around $5,108 per ounce. The yellow metal saw positive gain for the third straight week, rising 1.3% on a weekly basis. Meanwhile, Silver prices rose 5.6% this week to close around $82.3 per ounce.

Precious metal demand rose on Friday boosted by fall in the US dollar after the US Supreme Court struck down President Trump's reciprocal tariffs. However, the US Dollar Index recovered after Donald Trump countered the US Supreme Court by signing an executive order for a new 10% global tariff.

Besides this, weak US GDP data also impacted the investors sentiments towards riskier assets and moved to safe haven like gold and silver. The US economy expanded an annualized 1.4% in Q4 2025 compared to 4.4% growth in Q3 and below the market forecasts of 3%, impacted by the government shutdown and trade tariffs. Meanwhile, the US core PCE price index rose to 3% for December month, which may lead to a restrictive stance by the US Federal Reserve in the next policy decision meeting.

Another reason that supported the gold and silver demand is escalating geopolitical tension between the US and Iran. US President Donald Trump has warned of near‑term military escalation if nuclear deal negotiation does not take place.

The combination of the above factors supported the gold and silver prices in the international markets as investors turned cautious and watch out for global reaction next week to the US Supreme Court ruling on US President Donald Trump's trade tariffs.

In the Domestic markets. Gold prices rose inline with the global market prices. On Friday, MCX Gold April Future closed around ₹1.56 per 10 gram and rose 0.6% on a weekly basis. Meanwhile, MCX Silver March future closed around ₹2.52 lakh per kg, rising over 3.5% this week.