Gold prices fell for the fourth straight session on Thursday, hitting a more than one-week low, after a U.S. trade court ruled against President Donald Trump’s "reciprocal tariffs" policy. The decision weakened gold’s safe-haven appeal and pushed the dollar higher, making the metal more expensive for non-dollar buyers.
U.S. gold futures dropped by 0.4% to $3,309.50, adding to earlier losses of around 2% over the previous three days. The U.S. Court of International Trade ruled that Trump had exceeded his authority by imposing broad tariffs on nations with trade surpluses, suspending much of his tariff agenda. The administration has filed an appeal, signaling a potential escalation to the Supreme Court.
The court’s ruling drove the U.S. dollar index higher, bolstering risk appetite in equities and further pressuring gold. Positive earnings from Nvidia and a rebound in consumer confidence also contributed to the shift away from haven assets.
Despite the short-term drop, analysts note that gold's long-term outlook remains supportive. Ongoing inflation concerns and expectations of a weaker dollar may continue to support prices. Minutes from the Federal Reserve’s early May meeting revealed concerns over rising inflation and unemployment, increasing uncertainty around future interest rate moves.
Markets now await upcoming U.S. GDP and core PCE data for further clues on the economic outlook and Fed policy direction.