Spot gold surged to a record high above $5,204 per ounce on Monday, February 23, 2026, as investors reacted to the U.S. Supreme Court’s decision striking down President Donald Trump’s sweeping tariffs and the subsequent announcement of latest levies. The price of gold rose nearly 2%, fueled by escalating trade tensions and a renewed appetite for safe-haven assets.
The Supreme Court, in a 6-3 ruling on February 20, determined that Trump had exceeded his authority by imposing tariffs without congressional approval, a decision the President publicly denounced as “deeply disappointing” and “ashamed.” The tariffs, initially implemented in an effort to revitalize American manufacturing, covered dozens of countries including China, Canada, Mexico, and the United Kingdom. The court found that the International Emergency Economic Powers Act (IEEPA), the legal basis for the tariffs, did not authorize the President to impose such measures without explicit congressional consent.
In response to the ruling, President Trump immediately vowed to implement a 10% global tariff under Section 122 of federal law, and indicated he was exploring additional tariff measures through other legal avenues. This swift reaction, coupled with ongoing tensions with Iran, drove investors towards gold as a hedge against economic uncertainty.
The economic impact of the initial tariffs was significant, with the U.S. Government collecting approximately $30 billion in tariffs monthly, though this represented only around 5% of overall government revenue in January. According to a working paper from Harvard University and the University of Chicago, the majority of the cost of Trump’s tariffs was being absorbed by U.S. Importers, rather than foreign suppliers. Import volumes from China decreased from 12% of total U.S. Imports in 2024 to approximately 8% by September of last year, as importers sought to avoid the tariffs by shifting production to countries with lower rates.
The Supreme Court’s decision throws U.S. Trade policy into uncertainty, and the President’s commitment to maintaining tariffs through alternative legal means suggests the trade dispute is far from over. The Guardian reported that Trump illegally used executive power to impose the initial global tariffs. The administration has not yet detailed the specific implementation timeline for the new Section 122 tariffs, leaving businesses and investors awaiting further clarification.
In India, demand for gold during the current festive season has further bolstered prices, with 24K gold reaching nearly Rs 1,58,500 per 10 grams. This increased demand adds another layer of upward pressure on global gold prices, compounding the effects of the trade policy developments.
As of Monday afternoon, the White House had not responded to requests for comment regarding the potential impact of the new tariffs on specific industries or trading partners. The office of the U.S. Trade Representative has scheduled a briefing for February 27 to discuss the implementation of the Section 122 tariffs.
