Gold Drops for Fourth Day as U.S. Court Blocks Trump Tariffs
Gold extended its decline for a fourth day, as markets digested news that a U.S. trade court has blocked President Donald Trump’s global tariff agenda.
Bullion prices fell as much as 1% on Thursday, adding to losses of 2% in the previous three sessions, as the U.S. Court of International Trade ruled that Trump’s tariffs were illegal, further strengthening the dollar. A stronger dollar makes gold more expensive for most buyers.
Analysts said the court ruling, which suspended most of Trump’s tariffs but can be appealed by the government, could dim some of gold’s appeal as a safe haven.
“The news out of the U.S. could see some significant downside for gold in the coming sessions as the safe haven trade is pulled back,” said Nick Twidale, chief market strategist at AT Global Markets in Sydney, adding that prices could fall further in the current trading session before finding some support. “The longer-term trend is still in place so we will see some bargain hunters at some point today.”
Elsewhere, strong tech earnings from Nvidia Corp. on Wednesday led to an acceleration of risk appetite returning to Wall Street — also adding to the bearish drag on gold. The positive results came after U.S. consumer confidence figures released earlier this week showed a sharp increase amid optimism about improving U.S. relations with some of its trading partners. The U.S. trade court ruling is the latest twist in market uncertainty fueled by Trump’s aggressive tariff agenda, which has prompted investors to seek safety in gold, a traditional safe haven.
While prices are currently trading about $240 below an all-time high set last month, the precious metal is still up more than a quarter this year, thanks in part to central bank buying.
Spot gold fell 0.9% to $3,258.43 an ounce as of 8:00 a.m. in Singapore. The Bloomberg Dollar Spot Index was up 0.3%. Silver and platinum fell, while palladium was little changed.
Source: Bloomberg
