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Gold prices extended their recent decline in Asian trading on Thursday, as a U.S. federal court ruling against President Donald Trump’s proposed trade tariffs bolstered risk sentiment across markets. The ruling also fueled a stronger U.S. dollar, further weighing on gold and broader metal prices.
Spot gold fell 0.5% to $3,273.19 an ounce, while gold futures for August declined 0.8% to $3,297.25 per ounce by 00:47 ET (04:47 GMT). Bullion is down 2.5% so far this week, extending losses after retreating from record highs last week. Profit-taking has also contributed to the pullback.
The U.S. Court of International Trade ruled on Wednesday that Trump had exceeded his authority in attempting to impose sweeping trade tariffs, stating that such powers rest with Congress. The court ordered the administration to comply within 10 days, though the White House swiftly announced its intent to appeal the decision.
The ruling sparked a broad rally in risk-driven assets, as markets bet that Trump’s aggressive trade agenda may face obstacles. However, analysts caution that the legal process could drag on, and the tariffs may remain in place during the appeal period, adding further uncertainty to the outlook.
The dollar also strengthened on the back of the court ruling, putting additional pressure on gold and other commodities priced in greenbacks. The dollar’s three-day rebound has been a headwind for bullion this week.
Safe havens like gold and the Japanese yen weakened as investors rotated into equities and other risk assets. While the legal battle over Trump’s tariffs may create additional market volatility, for now, sentiment has shifted in favor of riskier trades, leaving gold under pressure.
