New York: Gold prices fell in Asian trade on Thursday, continuing a downward trend as a U.S. federal court’s ruling against President Donald Trump’s trade tariffs led to a rally in risk-driven assets. This development was reported by APA, which cited investing.com as a source of information. The court’s decision also bolstered the U.S. dollar, putting pressure on gold and suppressing broader metal prices.
According to Azeri-Press News Agency, the recent court ruling affected gold, which was already experiencing losses due to Trump’s retreat on increasing tariffs on Europe. This retreat encouraged risk-taking and reduced the demand for safe-haven assets like gold. Additionally, a three-day recovery in the dollar further impacted bullion. Spot gold decreased by 0.5% to $3,273.19 an ounce, while gold futures for August dropped by 0.8% to $3,297.25 an ounce. For the week, gold was down by 2.5%, having previously seen heavy profit-taking after reaching record highs.
Gold’s decline mirrored the performance of oth
er safe havens, notably the Japanese yen, as the court’s decision encouraged risk appetite. The U.S. Court of International Trade determined that Trump exceeded his authority in proposing extensive trade tariffs against major global economies, stating that Congress has the ultimate authority over such tariffs. The Trump administration was given a 10-day deadline to comply with the ruling, although the White House immediately appealed the decision.
The anticipation that Trump might be unable to continue with his tariff agenda increased risk appetite, which has been a significant source of market uncertainty this year. However, analysts cautioned that Trump’s tariffs are likely to persist during the appeal process, potentially leading to further market uncertainty. Despite this, gains in risk-driven markets suggested that investors are, at least for now, considering the possibility of an end to Trump’s tariffs.
The strengthening of the dollar following the court ruling added to the pressure on metal prices, w
ith most metals already experiencing losses due to a stronger dollar earlier in the week. In contrast, platinum futures increased by 0.2% to $1,080.10 an ounce, and silver futures rose by 0.5% to $33.328 an ounce.
Industrial metals also saw gains, with benchmark copper futures on the London Metal Exchange increasing by 0.2% to $9,586.20 a ton, and U.S. copper futures rising by 0.2% to $4.6958 a pound. Market attention on Thursday shifted to more U.S. economic data, particularly a revised reading of the first-quarter gross domestic product. Preliminary GDP data from April showed an unexpected contraction in the U.S. economy during the first quarter, a factor that had previously supported gold prices. The minutes from the Federal Reserve’s May meeting, released on Wednesday, revealed that the central bank remains concerned about the U.S. economic outlook.