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Did The Supreme Court Ruling Striking Down Tariffs Make Metals Prices Rise?
Some analysts have noted that striking down Trump’s tariffs would appear to make gold and silver prices decrease, because the tariffs and the uncertainty they caused were a key factor that made metals prices spike in 2025, but uncertainty over the fallout of the court decision is helping metals prices rise. “It’s hard to see the president collecting his toys and going home; he will try to re-establish tariffs using other statutes which will promote volatility,” metals trader and market commentator Tai Wong told Reuters. Bart Melek, global head of commodity strategy at TD Securities, told Bloomberg the ruling suggests the government may have to refund more than $175 billion to importers, which would “stress the budget.” This may increase “speculation that monetary tools may need to be used to fund the government,” suggesting future interest rate cuts could drive up metals prices.
Gold and silver have had a highly volatile few weeks after reaching record highs of more than $5,600 and $120, respectively, in late January. Their historic rally was fueled by geopolitical tensions, including with Venezuela and Iran, Trump’s tariffs and federal interest rate cuts, though prices crashed after Trump named Kevin Warsh, seen as less likely than other presumed Fed candidates to slash interest rates, as his pick for Federal Reserve chair at the end of January. Since then, silver and gold prices have swung back and forth, including a 10% crash in silver’s price last week. Metals Daily CEO Ross Norman blamed the volatility on the metals market feeling “more like a casino than a marketplace,” while analysts at Saxo Bank have projected “silver is likely to continue trading violently in both directions.”