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.