Gold prices dropped to a one week low after a United States federal court blocked the majority of tariffs introduced by president Donald Trump, dampening demand for the metal as a safe haven investment. According to Reuters, the ruling, combined with the strength of the US dollar, added pressure to gold markets and caused a modest selloff.
By 04:31 GMT on 29 May, the spot price of gold fell by 0.5 percent to $3,273.37 (approximately £2,578.50) per ounce. This marked its lowest level since 20 May. Gold futures for August delivery also declined by 0.8 percent, falling to $3,297.25 (£2,597.77) per ounce as of 04:47 GMT. The drop comes after gold saw a 2.5 percent decrease over the week, following a wave of profit-taking after the commodity reached record highs.
The blocked tariffs had been part of Trump’s so-called “reciprocal” import policy, which aimed to increase duties on a wide range of goods, particularly from the European Union. The court’s decision has reduced investor concerns over trade disruptions, thereby decreasing demand for safe haven assets like gold.
The court has given the Trump team 10 days to comply with the decision, although the White House has already filed an appeal. If the appeal progresses, the case could eventually reach the US Supreme Court, potentially leading to renewed market uncertainty.
Earlier in the week, Trump had also delayed the implementation of a 50 percent tariff on EU imports until 9 July, which helped further calm tensions in financial markets. Analysts note that while the postponement eased short term fears, the ongoing legal and political uncertainty in the United States could continue to affect global commodity markets.
