Gold Rises as Dollar Weakens, Geopolitical Tensions Grow

Spot gold prices rose Friday as the U.S. dollar weakened due to uncertainty over new U.S. tariffs. Gold remains in an uptrend on its weekly chart.

The U.S. Supreme Court declared earlier tariffs from President Trump illegal. Trump responded by adding an additional 15% tariff on imports. The dollar has weakened since these announcements, which typically boosts foreign demand for gold.

Geopolitical tensions are also supporting gold prices. Traders are watching ongoing negotiations between the United States and Iran, which continue Thursday. These talks come ahead of a potential 10-to-15-day window for military activity suggested by Trump last week.

Uncertainty around the Federal Reserve’s first interest rate cut in 2026 influences gold. Gold topped at $5602.23 in January after the last Fed meeting, when the dollar reached a bottom. This suggested a hawkish message from the central bank. The market sees a 94% chance the Fed will not cut rates in March, while the CME FedWatch Tool indicates only a 44% chance for a June cut.

The gold market will likely lean higher this week. The weekly Fibonacci level at $5143.89 is a key directional control point. Holding above this level could put $5600 back on the map.