Gold jumps on soft US GDP and Trump’s new tariffs

Gold prices climbed more than 1% on Friday (February 20, 2026), supported by weaker-than-expected US economic data as investors assessed the fallout from President Donald Trump’s announcement of a fresh round of global import tariffs after a Supreme Court ruling struck down earlier duties.

Spot gold rose 1.5% to $5,071.48 per ounce at 2:08 p.m. New York time (1908 GMT). US gold futures for April delivery settled 1.7% higher at $5,080.90.

Tariffs back in focus after Supreme Court ruling

Tai Wong, an independent metals trader, said it was “hard to see the president collecting his toys and going home”, adding that Trump would try to re-establish tariffs using other statutes, which would “promote volatility”. Wong added that medium-term uncertainty would not deter gold bulls.

Trump said he would impose a 10% global tariff for 150 days to replace some emergency duties that were struck down by the US Supreme Court. The court ruled his broad global tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were illegal and that he had exceeded his authority under that law.

GDP misses, inflation runs hotter

Data showed US economic growth slowed sharply to a 1.4% annualised rate in the fourth quarter, well below economists’ forecast of 3%, as the government shutdown and softer consumer spending weighed on activity.

Meanwhile, the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditure (PCE) index, rose 0.4% in December, above expectations for a 0.3% increase. Bob Haberkorn, senior market strategist at RJO Futures, said the data showed inflation was still present, and with GDP coming in lower it suggested the economy was not close to a turning point—supportive for gold amid “unknowns and uncertainties”.

Traders still expect two 25-basis-point rate cuts by the Fed this year, with the first expected in June. Gold is typically viewed as a safe-haven during geopolitical and economic uncertainty and tends to do well when interest rates are low.

Other precious metals surge

Spot silver jumped 5.8% to $82.92 per ounce. Spot platinum gained 4.5% to $2,163.53, while palladium rose 4% to $1,751.70.