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 US court decision.

As of 10:13 a.m. IST, spot gold was down nearly 0.5 per cent, or $15.13, to $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 $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.

The dollar index was up 0.4 per cent at $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.

Source: Thehindubusinessline