Gold prices surged to their highest in over three weeks on Monday as the dollar weakened following the U.S. Supreme Court's decision to lift a significant portion of tariffs imposed by former President Donald Trump. This news, combined with rising tensions between the U.S. and Iran, contributed to the increased demand for gold, which is often seen as a safe-haven asset during times of uncertainty.

In early trading, spot gold rose by 1.2% to $5163.60 per ounce, marking its highest level in more than three weeks; however, it later pared some gains to trade around $5147. Moreover, U.S. futures contracts for gold for April delivery also increased, rising 1.6% to $5162.2. Analysts noted that the expectation of economic growth, spurred by the Supreme Court's ruling, prompted bullish sentiment in the market, but concerns over potential conflict in the Middle East tempered the overall market enthusiasm.

Additionally, traders pointed out that the Chinese market was closed due to the Lunar New Year holiday, leading to reduced trading volumes and increased volatility. Trading in the Chinese market is expected to resume tomorrow, which may further influence gold prices and market sentiment. Overall, the combination of geopolitical tensions and market dynamics are putting upward pressure on gold prices, reflecting investors' cautious outlook amidst unpredictability in international relations.