PRECIOUS-Gold gains over 1% on soft US data, Trump's fresh tariff move

By Anmol Choubey

Feb 20 (Reuters) - Gold prices rose more than 1% on Friday, supported by weaker‑than‑expected U.S. GDP data, while investors digested President Donald Trump's announcement of fresh global tariffs following the U.S. Supreme Court's tariffs ruling.

Spot gold XAU= was up 1.5% at $5,071.48 an ounce by 02:08 p.m. (1908 GMT). U.S. gold futures GCcv1 for April delivery settled 1.7% higher at $5,080.90.

"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," said Tai Wong, an independent metals trader.

Medium-term uncertainty won't deter gold bulls, Wong added.

Trump said that he would impose a 10% global tariff for 150 days to replace some of his emergency duties that were struck down by the U.S. Supreme Court.

The Supreme Court declared illegal his broad global tariffs imposed under the International Emergency Economic Powers Act, ruling that he had overstepped his authority under that law.

Wall Street's main stock indexes jumped on Friday after the Supreme Court ruling. .N

Data showed U.S. economic growth slowed sharply to a 1.4% annualized rate in Q4, well below economists' forecast of 3%, as the government shutdown and softer consumer spending hit activity.

Separately, the Fed's preferred inflation gauge, the Personal Consumption Expenditure index, rose 0.4% in December, above expectations for a 0.3% increase.

"(The data) shows inflation is still present in the marketplace ... but with GDP coming in lower, it suggests the economy is not close to a turning point. There are still many unknowns and uncertainties around the U.S. economy, and that is supportive for gold," said RJO Futures senior market strategist Bob Haberkorn.

Traders still expect two 25-basis-point rate cuts by the Fed this year, with the first expected in June. FEDWATCH

Gold, considered a safe-haven asset when there is geopolitical and economic uncertainty, also tends to do well when interest rates are low.

Elsewhere, spot silver XAG= gained 5.8% to $82.92 an ounce. Spot platinum XPT= rose 4.5% to $2,163.53, while palladium XPD= added 4% to $1,751.70.