Spot Gold hovered above a fresh 1-week low of $3,245.56 on Thursday, as diminished tariff risks undermined safe-haven demand.
The US Court of International Trade found that President Trump had exceeded his authority to impose reciprocal tariffs. By the Trade Court’s order, the measures will have to be vacated and permanently blocked.
The Court’s decision is expected to be appealed by the Trump administration.
The minutes of the FOMC’s May meeting showed that Fed policy makers viewed the announced tariff increases as being significantly larger and more extensive than anticipated. What is more, policy makers warned of a substantial uncertainty surrounding the direction of trade policy as well as the scope, timing and duration of its effects on economy.
Fed officials considered this uncertainty as unusually high and cautioned that downside risks to employment and economic activity and upside risks to inflation had risen.
As US economic growth and the labor market remain solid, while the central bank’s current policy stance remains moderately restrictive, Fed policy makers could adopt a wait-and-see approach, waiting for more clarity on inflation and economic trends.
In the meantime, US gold exports to Switzerland rose in April after duties on precious metals were lifted.
Spot Gold was last down 0.52% on the day to trade at $3,271.62 per troy ounce.
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