Gold continues to rally after Supreme Court strikes down Trump tariffs, experts say the battle is far from over

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By Ernest Hoffman
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Gold continues to rally after Supreme Court strikes down Trump tariffs, experts say the battle is far from over teaser image

(Kitco News) – The U.S. Supreme Court struck down Donald Trump's trade tariffs on Friday morning, and while the decision ostensibly removed a massive source of uncertainty from the market, after a short dip, gold resumed its steady upward trend as if nothing had changed, setting fresh daily highs as it followed the exact same trajectory it was on before the ruling was announced.

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In a 6-3 majority decision, the ruling, authored by conservative Chief Justice John Roberts, upheld a lower court's decision that the law at issue - the International Emergency Economic Powers Act, or IEEPA - did not grant Trump the power to impose tariffs, and his use of this 1977 law exceeded his executive authority.

"Our task today is to decide only whether the power to "regulate ... importation," as granted to the president in IEEPA, embraces the power to impose tariffs,” Roberts wrote in the ruling. “It does not."

Roberts wrote that "the president must 'point to clear congressional authorization' to justify his extraordinary assertion of the power to impose tariffs."

"He cannot."

Justice Brett Kavanaugh wrote the dissent on behalf of fellow conservative justices Clarence Thomas and Samuel Alito, saying the ruling did not necessarily prevent Trump "from imposing most if not all of these same sorts of tariffs under other statutory authorities."

“The court's decision is not likely to greatly restrict presidential tariff authority going forward,” he added.

The White House had no immediate comment on the ruling.

Gina Bolvin, President of Bolvin Wealth Management Group, told Kitco News that the market reaction to the tariff ruling was muted, which suggested it was largely priced in.

“Because IEEPA tariffs accounted for about 60% of those imposed, the decision’s economic impact is limited,” she said, noting that retail stocks are benefiting from expectations of lower cost pressures.

“The ruling also supports inflation expectations and increases the likelihood of rate cuts as tariff-related headwinds ease—making it a win for businesses and consumers alike,” Bolvin added.

Jeff Buchbinder, Chief Equity Strategist for LPL Financial, told Kitco News the story is far from over.

“We would fade a short-term bounce on the Supreme Court ruling because the Trump administration will quickly pivot to different legal grounds for replacement tariffs while deficits go higher in the interim,” he said. “However, if lower tariffs help cool inflation, it could firm up expectations for Fed rate cuts later this year.”

Jamie Cox, Managing Partner for Harris Financial Group, said the ruling is positive for inflation and the rate path, but he expects the administration to fight to keep as much of the money as possible.

“The Supreme Court decision will pave the way for accelerated rate cuts as inflation expectations from tariffs are now less of a factor,” he told Kitco News. “The looming question is what new authority the Administration will use to salvage some of the tariff revenue.”

Spot gold last traded at $5,070.84 per ounce for a gain of 1.49% on the daily chart.

Kitco Media

Ernest Hoffman

Ernest Hoffman is a Crypto and Market Reporter for Kitco News. He has over 15 years of experience as a writer, editor, broadcaster and producer for media, educational and cultural organizations. Ernest began working in market news in 2007, establishing the broadcast division of CEP News in Montreal, Canada, where he developed the fastest web-based audio news service in the world and produced economic news videos in partnership with MSN and the TMX. He has a Bachelor's degree Specialization in Journalism from Concordia University. You can reach Ernest at 1-514-670-1339.

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