Gold price rebounds to $3,300 as market digests court ruling on Trump tariffs
Gold prices returned above $3,300 an ounce on Thursday as the market assesses the implications of a court ruling that blocked most of US President Donald Trump’s tariffs.Spot gold rose 0.6% to $3,307.79 an ounce as of 10:40 a.m. ET, having fallen to as low as $3,245.90 after the Asian markets opened.Three-month gold futures in New York also recovered, up 1.1% at $3,332.80 an ounce.Live Gold Price Chart and Real-Time UpdatesBullion initially fell after the US Court of International Trade deemed many of Trump’s tariffs to be illegal on Wednesday, drawing investors toward risk-on assets and away from the safe-haven metal. While the Trump administration filed a notice to appeal the ruling, the US Supreme Court may ultimately have the final say.In addition, strong tech earnings from Nvidia after the bell on Wednesday saw an acceleration of risk appetite returning to Wall Street — which piled on the bearish headwinds for gold.“The news out of the US could see some significant downside for gold in the sessions ahead as haven trades are pulled,” said Nick Twidale, chief market analyst at AT Global Markets in Sydney. “The longer-term trend is still in place so we will find some bargain hunters at some point in the day.”That proved to be the case, with gold rebounding from a one-week low at Thursday’s open. The rally was aided by new US data that showed an easing labour market, with weekly jobless claims rising by more than expected.“Gold is rallying on a jump in weekly initial jobless claims which could be a harbinger of a weakening labor market, which would get the Federal Reserve to cut (interest rates) more quickly,” said Tai Wong, an independent metals trader.Market focus is now on the US personal consumption expenditures data due Friday, which will be closely analyzed for signals on future monetary policy.“Equally impressive is gold’s sharp recovery overnight, (with the market) deciding that Trump will ultimately prevail against the trade court’s ruling,” Wong said.Goldman says buy more goldIn light of rising uncertainty surrounding US institutional credibility, analysts at Goldman Sachs have urged investors to buy more gold as a long-term hedge.“Following the recent failure of US bonds to protect against equity downside and the rapid rise in US borrowing costs, investors seek protection for equity-bond portfolios,” the bank’s analysts wrote in a note on Wednesday.“During any 12-month period when real returns were negative for both stocks and bonds, either oil or gold have delivered positive real returns.”In their note, the analysts recommended a higher-than-usual allocation to bullion given the potential risk of a sustained selloff in both US bonds and equities should investors lose faith in American assets and the institutions backing them.Gold price may have peaked at $3,500 for now, says BofA commodities headAs the bullion market is small relative to other major asset classes, “even a small diversification step out of US fixed income or risk assets could cause the next giant leap for gold prices,” the analysts wrote.So far this year, gold has risen by more than a quarter amid the market chaos unleashed by Trump’s aggressive trade policy. Last month, it set a new all-time high of $3,500.05 an ounce.Weiter zum vollständigen Artikel bei Mining.com
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