Gold prices declined during Asian trading on Thursday, extending a recent downtrend, after a U.S. federal court ruling against former President Donald Trump’s trade tariffs lifted investor appetite for risk and strengthened the U.S. dollar.
The U.S. Court of International Trade ruled that Trump had exceeded his authority in imposing sweeping tariffs on key global economies, asserting that only Congress has the power to enforce such broad trade measures. The White House responded by filing an immediate appeal. The court gave the administration a 10-day window to comply with the decision.
The ruling spurred gains across risk-oriented assets, weighing on safe-haven demand and contributing to losses in gold and other precious metals. The Japanese yen, another traditional haven, also weakened on improved market sentiment.
Gold Under Pressure from Dollar Strength and Tariff Uncertainty
Spot gold fell 0.5% to $3,273.19 an ounce, while August gold futures dropped 0.8% to $3,297.25 as of 00:47 ET (04:47 GMT). The metal has declined roughly 2.5% so far this week, as traders locked in profits following record highs reached last week.
Gold’s losses accelerated earlier in the week after Trump signaled a retreat from planned tariff increases on European imports, further bolstering risk sentiment. Concurrently, a three-day rebound in the dollar added additional pressure on bullion prices.
Analysts noted that while the court ruling could eventually dismantle parts of Trump’s tariff strategy, the legal process could take time, leaving investors navigating a volatile policy environment in the interim.
Stronger Dollar Weighs on Broader Metals Market
The U.S. dollar strengthened following the court decision, as investors bet that easing trade policy uncertainty could benefit the broader U.S. economy. The dollar’s rebound limited upside in commodity markets, where prices are generally dollar-sensitive.
Despite weakness in gold, other precious and industrial metals posted modest gains. Platinum futures edged up 0.2% to $1,080.10 per ounce, and silver futures rose 0.5% to $33.33.
In base metals, benchmark copper futures on the London Metal Exchange added 0.2% to $9,586.20 per ton. U.S. copper futures also gained 0.2%, trading at $4.6958 per pound.
Market Eyes U.S. Economic Data for Further Direction
Investors are now awaiting key U.S. economic indicators due later Thursday, including a revised reading on first-quarter gross domestic product (GDP). Preliminary data released in April showed the economy unexpectedly contracted, a development that had previously supported gold prices.
Meanwhile, minutes from the Federal Reserve’s May policy meeting, released on Wednesday, highlighted the central bank’s growing concern over the U.S. economic outlook, reflecting the complexity of balancing inflation and growth risks.
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