Gold Prices Decline as U.S. Court Ruling Spurs Risk Appetite and Strengthens Dollar
Gold prices continued to slide during Asian trading on Thursday, extending their recent downward trend as a U.S. federal court’s decision blocking former President Donald Trump’s proposed trade tariffs triggered a rally in risk-oriented assets.
The ruling also strengthened the U.S. dollar, further pressuring gold and dragging down broader metal prices.
Gold had already been under pressure this week after Trump walked back plans for elevated tariffs on the European Union, a move that lifted market confidence and reduced demand for safe-haven assets. A three-day rebound in the dollar also contributed to gold’s recent weakness.
As of 00:47 ET (04:47 GMT), spot gold dropped 0.5% to $3,273.19 per ounce, while August gold futures declined 0.8% to $3,297.25/oz. The yellow metal is now down 2.5% for the week, following a wave of profit-taking after last week’s surge to all-time highs.
Gold Slides as Risk Sentiment Improves Following Tariff Ruling
Gold declined alongside other traditional safe-haven assets such as the Japanese yen, after the U.S. Court of International Trade ruled that Trump overreached his executive authority in imposing wide-ranging tariffs. The court reaffirmed that Congress retains ultimate control over foreign trade measures.
The court gave the administration 10 days to comply, though the White House quickly filed an appeal.
Market sentiment improved on the belief that Trump’s tariff plans could be halted—removing a key source of market tension in 2025. However, analysts cautioned that the tariffs currently in place may persist through the appeals process, and that ongoing legal proceedings could introduce new layers of uncertainty.
Nevertheless, the rise in risk-focused investments indicates that traders are, at least temporarily, pricing in a potential end to the tariff agenda.
Dollar Strength Pressures Metals; Market Awaits U.S. GDP Data
The U.S. dollar gained sharply after the court decision, fueled by expectations that easing trade tensions could stabilize the economic outlook. The stronger dollar limited upside in metal markets, many of which were already dealing with losses earlier in the week.
In precious metals, platinum futures rose 0.2% to $1,080.10/oz, while silver futures climbed 0.5% to $33.328/oz.
Among industrial metals, benchmark copper futures on the London Metal Exchange edged up 0.2% to $9,586.20 per ton, and U.S. copper futures increased by 0.2% to $4.6958 per pound.
Investor attention on Thursday turns to updated U.S. GDP data for the first quarter. A preliminary report in April showed an unexpected economic contraction, which had previously boosted gold.
Additionally, minutes from the Federal Reserve’s May meeting, released on Wednesday, reflected growing concern among policymakers over the trajectory of the U.S. economy.
