Gold climbs above $5,200 on geopolitical tensions, trade uncertainty

• Gold rises to near $5,230 in Tuesday’s early Asian session. 

• Recent US Supreme Court rulings and fresh tariff announcements weigh on the Gold price. 

• Traders will closely monitor the US-Iran talks on Thursday. 

Gold price (XAU/USD) jumps to around $5,230 during the early Asian session on Tuesday. The rally of the precious metal is bolstered by heightened geopolitical tensions and global trade uncertainty following US tariff decisions. Traders brace for the US January Producer Price Index (PPI) report on Friday for fresh impetus. 

The US Supreme Court’s ruling, which declared US President Donald Trump’s sweeping tariffs illegal, has injected uncertainty into global trade yet again, as the US President imposed a new 15% tariff on Saturday. Trump noted in a Truth Social post that the fresh levies would be “effective immediately" and warned that additional tariffs would follow. Renewed uncertainty in global trade dynamics could boost a safe-haven asset such as Gold. 

The US and Iran are expected to meet for a further round of talks in Geneva on Thursday in a sign that Trump’s administration believes Tehran is making serious proposals to dilute its stockpile of highly enriched uranium and show it is not seeking a nuclear weapon. Iranian foreign minister, Abbas Araghchi, said that he thought there was still a good chance of finding a diplomatic solution.

Any signs of rising tensions between the US and Iran might contribute to the upside of the yellow metal. On the other hand, positive developments surrounding the negotiation could undermine the Gold price in the near term. 

The attention will shift to the US PPI data on Friday, which might offer more clues about the US interest rate path. The headline and core PPI are expected to show a rise of 0.3% in January. In case of hotter-than-expected outcomes, this could lift the US Dollar (USD) and drag the USD-denominated commodity price lower.