Emre Yumlu 
Global markets closed the week with heightened volatility as investors reacted to weaker-than-expected U.S. economic data and a major shift in U.S. trade policy. A disappointing growth report combined with President Donald Trump’s announcement of new global tariffs boosted demand for safe-haven assets, sending both gold and silver sharply higher.
After the U.S. Supreme Court ruled that broad tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful, Trump unveiled a new measure: a 10% global tariff to remain in effect for 150 days. The Court determined that the president had exceeded his authority under the statute. Despite the legal setback, Wall Street’s main indexes advanced following the decision, reflecting short-term relief in equity markets.
U.S. Growth Slows, Inflation Persists
Fresh data showed that the U.S. economy expanded at an annualized rate of 1.4% in the fourth quarter, significantly below the 3% pace economists had projected. The slowdown was attributed to the impact of a government shutdown and softer consumer spending, both of which weighed on overall activity.
Meanwhile, the Federal Reserve’s preferred inflation indicator, the Personal Consumption Expenditures (PCE) index, rose 0.4% in December, exceeding expectations for a 0.3% increase. The combination of cooling growth and persistent inflation underscores the fragile state of the U.S. economy.
Market participants continue to price in two 25-basis-point interest rate cuts from the Federal Reserve this year, with the first widely expected in June. Lower interest rates and ongoing uncertainty traditionally provide a supportive backdrop for precious metals.
Gold and Silver Surged!
Against this backdrop of economic and political uncertainty, spot gold climbed 2.24% on the day, reaching $5,108 per ounce. The move reflects renewed safe-haven flows as investors hedge against macroeconomic risks and trade-related disruptions.
Silver outperformed, posting a daily gain of 7.78% to trade near $84 per ounce. The rally was supported not only by defensive positioning but also by expectations tied to industrial demand dynamics.
The latest developments suggest that trade policy uncertainty, growth concerns, and monetary policy expectations will remain central drivers for precious metals in the weeks ahead.
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