Gold Prices Drop After US Court Blocks Trump Tariffs 2025
Gold Price Movement Key Details
| Aspect | Details | Impact |
|---|---|---|
| Date | May 29, 2025 | One-week low hit |
| Price | $3,273.37/oz | Down 0.5% |
| Trigger | US court tariff block | Reduced safe-haven demand |
| US Dollar | Index up 0.5% | Gold more expensive |
| Later Recovery | $3,319.22/oz | Up 0.9% on jobs data |
Core details of gold price movement
Factors Affecting Gold Prices
| Factor | Description | Effect on Gold |
|---|---|---|
| US Dollar | Strengthened by tariff block | Price drop |
| Risk Sentiment | Improved after court ruling | Reduced safe-haven appeal |
| Jobs Data | Higher unemployment claims | Price recovery |
| Fed Policy | Inflation vs unemployment concerns | Market uncertainty |
Key factors influencing gold prices
Gold vs Other Precious Metals
| Metal | Price (May 29, 2025) | Change |
|---|---|---|
| Gold | $3,273.37/oz | Down 0.5% |
| Silver | $32.42/oz | Up 0.2% |
| Platinum | $990.42/oz | Up 0.3% |
| Palladium | $965.23/oz | Up 0.5% |
Comparison of precious metal prices
Key Takeaways from Gold Price Drop
- Price Drop: Gold fell to a one-week low of $3,273.37/oz, a one-week low, on May 29, 2025.
- Trigger: US court blocked Trump’s “reciprocal tariffs.”
- US Dollar: Index rose by 0.5%, making gold costlier for foreign buyers.
- Recovery: Gold price later rose to $3,319.22/oz, up 0.9%, on weak jobs data.
- Outlook: Bullish long-term due to potential inflation pressures.
Gold Prices Drop After US Court Blocks Trump Tariffs 2025
On May 29, 2025, gold prices dropped to a one-week low of $3,273.37/oz after a US federal court blocked President Donald Trump’s “reciprocal tariffs,” boosting the US dollar and dampening gold’s safe-haven appeal, according to gold prices drop after US court blocks tariffs. Stay updated with Business Updates for business insights on gold prices drop after US court blocks Trump tariffs 2025.
Why Did Gold Prices Fall?
The US Court of International Trade ruled on May 29 that Trump exceeded his authority by imposing tariffs on nations with trade surpluses, halting duties introduced on April 2. This led to a 0.5% rise in the US dollar index, making gold more pricier for foreign currency holders, as noted in our Latest News. The decision also improved risk-reward sentiment, reducing the demand for gold as a safe-haven asset, per Nicholas Frappell of ABC Refinery.
Market Dynamics and Recovery
Despite the initial price drop, gold later rebounded to $33,319.22/oz., up 0.9%, driven by higher-than-expected US jobless claims, signaling a weakening labor market, according to gold market volatility. The stronger dollar also pressured gold prices, as highlighted by reports on US dollar rally impact. Bloomberg reported that gold’s gold’s four-day decline, steadying as markets absorbed the news.
Federal Reserve and Economic Outlook
The Federal Reserve’s May 6-7 minutes revealed concerns about rising inflation and rising unemployment, complicating monetary policy decisions, as per Reuters reports. A potential rate cut could support gold prices if the labor market weakness persists, as noted by analyst Tai Wong. Posts on X reflect mixed market sentiments, with gold dipping 1% initially, per @FirstSquawk. Follow our Market Insights for updates.
Global and Economic Impacts
The tariff block eased trade tensions war fears, boosting US markets Wall Street futures and Asian equities, as reported by economic data influence. Earlier tariff threats had driven up gold’s safe-haven demand on May 19, per Zawya reports. Investors are now awaiting US economic data for PCE data for inflation cues, as covered in our Latest Updates.
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Conclusion: Gold’s Bullish Outlook
Despite the price drop, gold remains bullish in the long-term due to potential inflation and a weaker dollar, per Frappell’s analysis. Stay informed with Kashmir News on gold prices drop after US court blocks Trump tariffs 2025.
