Gold Declines Near $3,300 as US Dollar Recovers After Appeals Court Suspends Tariff Ban

Gold Declines Near $3,300 as US Dollar Recovers After Appeals Court Suspends Tariff Ban

Gold Prices Fall Amid US Dollar Strength

Gold prices (XAU/USD) fell to near $3,290 during European trading on Friday, losing ground after a strong rally the previous day. The recovery of the US Dollar (USD) exerted selling pressure on the yellow metal, as the Greenback gained strength following a key court ruling.

Appeals Court Suspends Tariff Ban

The US Court of Appeals temporarily suspended the decision by the US Court of International Trade, which had declared most of President Trump's tariffs illegal. The lower court had ruled these tariffs invalid on the grounds that the large trade imbalances did not constitute a "national emergency" under the International Emergency Economic Powers Act (IEEPA).

Impact on Gold and Dollar Index

The uncertainty surrounding tariff enforcement reduced concerns over permanent tariff removals, bolstering the US Dollar. The US Dollar Index (DXY), measuring the Greenback against six major currencies, rebounded to around 99.65, making gold more expensive for investors holding other currencies.

US Core PCE Inflation Forecast

Adding to market caution, the US Core Personal Consumption Expenditures (PCE) inflation is forecast to increase moderately by 2.5% year-over-year in April. This inflation metric is closely watched for signals on Federal Reserve policy.

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