Gold Slips in Asian Trade as Dollar Strength Outweighs Tariff Jitters
Gold prices declined during Asian trading hours on Friday, weighed down by a firm U.S. dollar and signs of economic resilience, even as legal wrangling over President Donald Trump’s tariff agenda kept risk sentiment volatile.
The precious metal was on track for a weekly loss, having found only limited support from the ongoing uncertainty surrounding Trump’s trade measures. While bullion saw modest gains on Thursday after an appeals court temporarily reinstated the tariffs, those gains failed to reverse earlier losses.
The dollar’s strength, underpinned by encouraging U.S. economic indicators, remained a key headwind for gold and other metals. Markets are now looking ahead to the PCE price index—the Federal Reserve’s preferred inflation gauge—due later Friday, which could influence future rate policy.
By 00:44 ET (04:44 GMT), spot gold dropped 0.7% to $3,293.44 per ounce, while August gold futures fell 0.8% to $3,316.67.
Gold Pressured Despite Tariff Turbulence
For the week, gold was down over 1%, with earlier declines erasing gains tied to the fluctuating status of Trump’s trade tariffs.
Prices were undermined by dollar gains and continued profit-taking, especially after hitting record highs earlier in May.
Gold had already dropped earlier in the week after Trump announced a delay to planned tariffs on the European Union. The metal slid further following a trade court’s decision to block the tariffs, although an appeals court later reinstated them, adding to the volatility.
Trump responded angrily to the court setback, denouncing the judges and expressing hope that the Supreme Court would eventually support his trade measures.
Gold’s rebound after the tariff reinstatement was muted, with investors growing skeptical that Trump would follow through on his harsher tariff threats. A popular term mocking Trump’s unpredictability—TACO (Trump Always Chickens Out)—was widely shared on social media, reflecting public doubt about the sustainability of his trade agenda.
Dollar Gains Weigh on Metals Ahead of Inflation Data
Despite a brief pullback after Trump’s tariff reversal, the dollar appeared set for modest weekly gains, supported by stabilizing Treasury yields and improved economic data.
Revised GDP figures showed the U.S. economy contracted slightly less than previously reported in Q1, and Federal Reserve commentary suggesting that interest rates won’t be cut anytime soon also buoyed the greenback.
The stronger dollar exerted pressure on the metals complex:
- Platinum futures fell 0.6% to $1,074.85/oz
- Silver futures declined 1% to $33.075/oz
- London copper dipped 0.1% to $9,564.40 per ton
- U.S. copper futures slipped 0.4% to $4.6535 per pound
Investor attention is now on the April PCE price index, expected to show persistent inflation, with core PCE likely remaining above the Fed’s 2% target—a development that could delay potential rate cuts further.
