Key points:

• Gold surges above $5,160
• Silver takes off to $87
• Tariffs hit risk assets

Precious metals were feeling jumpy Monday morning after Trump said he’s slapping the world with a flat 15%.

⚖️ Tariff Talk Sparks Turbulence

• Gold (XAU/USD) jumped more than 1% toward the $5,160 area early Monday before pulling back, while silver spiked above $87 and then cooled off. Classic whipsaw action as traders reacted to fresh tariff headlines.
• The Supreme Court reversed sweeping tariffs on Friday, only for President Trump to respond with a flat 15% levy on imports. Markets generally dislike legal drama followed by policy improvisation.
• Safe-haven demand kicked in fast. Gold tends to attract flows during geopolitical or trade stress because it carries no credit risk and is priced globally.

🔄 Whipsaw in Full Effect

• Silver (XAG/USD), the more volatile cousin, rallied nearly 3% intraday before giving back part of the move. Its smaller market size and heavier speculative participation amplify price swings. Silver broke out of resistance on Friday.
• A whipsaw describes rapid moves in both directions that catch traders off guard. Breakout buyers and dip sellers both get tested when volatility spikes.
• Despite the early surge, neither metal managed to hold peak levels into the European session, signaling that conviction remains fragile.

📊 Growth, Inflation, and Cuts

• Data from last week showed US growth slowing to a 1.4% annualized pace in Q4, well below expectations. Softer growth often supports gold because it increases the odds of rate cuts.
• The Fed’s preferred inflation gauge, PCE, rose 0.4% in December, hotter than forecast. Higher inflation can delay rate cuts and lift bond yields, which pressures non-yielding assets like gold.
• Traders still price in two 25-basis-point cuts this year. As long as that view holds, gold’s broader backdrop stays constructive, even if headlines keep it jumpy.

Source: Tradingview