Gold stocks extended their losses on Thursday following a U.S. court ruling against former President Donald Trump’s tariff policy, which dampened safe-haven demand and sent gold prices below $3,300 per ounce.
As of press time, shares of Lingbao Gold (03330.HK) led the decline, falling 6.41%. Other major players followed suit: Chifeng Gold (06693.HK) dropped 4.65%, Tongguan Gold (00340.HK) slid 3.70%, and Shandong Gold (01787.HK) lost 1.83%.
The market reaction came after the U.S. Court of International Trade, based in Manhattan, issued a permanent injunction against Trump’s “Emancipation Day” tariffs, ruling that they exceeded presidential authority. The court found that the International Emergency Economic Powers Act, used by Trump to justify the tariffs, could not override the U.S. Constitution, which grants Congress the exclusive power to regulate international trade.
The lawsuit was brought by the Center for Justice and Democracy, a non-profit legal group, on behalf of five small American businesses that said they were adversely affected by the tariffs. This case marks the first major judicial blow to Trump’s controversial trade policies.
The ruling eased investor concerns over escalating global trade tensions, sparking a rally in U.S. stock futures. Conversely, demand for gold as a safe-haven asset weakened. COMEX gold futures fell 1% to $3,289.10 per ounce at the time of reporting.
Market Outlook Divided on Gold’s Future
Analysts offered mixed views on the implications for gold prices.
CITIC Futures noted that although recurring trade friction may continue to provide short-term support, broader macroeconomic factors—such as the delayed timing of the U.S. Federal Reserve’s anticipated rate cut and the absence of a debt ceiling crisis—limit the likelihood of a sustained gold rally.
Jinrui Futures echoed this sentiment, suggesting that markets have largely priced in the worst-case scenario regarding the tariff policy. The firm expects gold to enter a period of consolidation, with reduced volatility in the near term.
In contrast, Goldman Sachs maintained a bullish long-term view on gold. The investment bank cited growing concerns over the credibility of U.S. institutions and continued demand from central banks as key reasons for increasing gold exposure in investment portfolios.
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