New Delhi [India], May 29 : Gold prices slipped to their lowest level in nearly a week on Thursday, as a stronger US dollar weighed on the precious metal. The downturn was also influenced by investor optimism in equity markets following a major U.S. court decision.
As of 10:13 a.m. IST, spot gold was down nearly 0.5%, or USD 15.13, to USD 3,273.85, marking its lowest level since May 20.
"The US federal court's decision triggered a downside in gold prices, and if there is no response or counteraction from former President Trump, we could see further declines," said Mrinesh Jain Director, Bombay Bullion Metal Hub LLP, adding that "prices may potentially retest the support level around USD 3,125."
A US federal court on Wednesday (local time) ruled against US President Donald Trump's large-scale imposition of sweeping tariffs, deeming that this move exceeds his legal authority and that it would affect a wide range of imported goods.
"The court does not pass upon the wisdom or likely effectiveness of the President's use of tariffs as leverage," a three-judge panel said in the decision to issue a permanent injunction on the blanket tariff orders issued by Trump since January, reported by Reuters. "That use is impermissible not because it is unwise or ineffective, but because [federal law] does not allow it."
Meanwhile, the Trump administration has submitted a notice of appeal, disputing the court's jurisdiction and indicating that the case could be taken to the Supreme Court if needed.
The dollar index was up 0.4 per cent at USD 100.29. A stronger dollar makes greenback-priced gold more expensive for other currency holders. Alongside this, US Treasury yields also followed the dollar's trend, adding additional pressure on bullion.
Meanwhile, Indian stock markets opened on a strong note, buoyed by positive global cues stemming from the U.S. court ruling and robust quarterly earnings from U.S. tech giant Nvidia. This shift in investor sentiment prompted some diversification away from safe-haven assets like gold.
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