Gold touches over one week-low as US court ruling eases tariff concerns
Business
Spot gold was down 0.3% at $3,281.19 an ounce
(Reuters) - Gold prices dropped to a more than one-week low on Thursday after a U.S. trade court blocked most of President Donald Trump's tariffs, signalling easing trade risks and denting demand for the safe-haven metal.
Spot gold was down 0.3% at $3,281.19 an ounce, as of 0858 GMT, after hitting its lowest since May 20 earlier in the session.
U.S. gold futures dropped 0.5% to $3,279.10.
The dollar (.DXY), opens new tab and Wall Street futures rose after the Manhattan-based Court of International Trade ruled that Trump overstepped his authority by imposing across-the-board duties on U.S. trade partners.
A stronger dollar makes greenback-priced commodities more expensive for holders of other currencies.
"The court's decision triggered a relief in the financial markets and with that came more risk appetites, which weighs on gold," Ricardo Evangelista, senior analyst at brokerage firm ActivTrades, said.
The White House swiftly appealed the decision and signaled it may take the case to the Supreme Court if necessary.
Trump levied "reciprocal tariffs" on multiple countries in early April, stoking fears of a global recession. Many of those country-specific tariffs were paused a week later.
Gold, considered a safe asset amid geopolitical and economic uncertainties, has hit multiple record highs this year.
Meanwhile, Fed officials at their May 6–7 meeting acknowledged possible "difficult tradeoffs" ahead, with rising inflation and unemployment, and warned about growing recession risks, according to meeting minutes.
Markets now await U.S. GDP data due later in the day, along with core U.S. Personal Consumption Expenditures figures on Friday, for further cues on the Fed's policy path.
"We maintain our bullish stance on gold, though a pullback towards $3,050/oz looks possible after a recent swift price rally," ANZ said in a note.
"Geopolitical tensions are likely to be complicated by President Trump’s trade and foreign policies in 2025, driving haven demand for gold."
Spot silver rose 0.9% to $33.29 an ounce, platinum was up 0.1% to $1,075.95 and palladium firmed 0.8% to $969.87.
