Gold Price Soars Above $3,300 as US Court Halts Trump Tariffs, USD Drops

Gold Surges as US Dollar Weakens Following Court Halt on Trump Tariffs

New York, May 29, 2025 – Gold prices (XAU/USD) rallied above $3,300 during Thursday’s North American session, recovering from an earlier low of $3,245. The jump came after the US Dollar weakened sharply, triggered by a federal court ruling declaring former President Donald Trump’s tariffs unconstitutional.

Court Rules Trump’s Tariffs Unconstitutional

On Wednesday, the US District Court in Manhattan ruled that former President Donald Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA) by imposing retaliatory tariffs without congressional approval. The court ordered the administration to remove the tariffs within ten days. The White House has appealed the decision, but the ruling has already impacted market sentiment.

This legal development has introduced fresh uncertainty to US trade policy and added to global economic concerns.

USD Drops, Boosting Gold Appeal

Following the ruling, the US Dollar Index (DXY) fell to around 99.70, wiping out earlier gains. A weaker dollar typically makes gold cheaper and more attractive to foreign investors.

As a result, gold—considered a traditional safe-haven asset—saw increased demand amid rising economic uncertainty. Meanwhile, US firms reportedly paused investment plans until tariff policies become clearer.

Investor Caution Grows Amid Uncertainty

With legal and political uncertainty surrounding tariffs—especially those related to fentanyl import duties and immigration barriers—investors are reassessing strategies. Sectors dependent on international trade remain cautious while awaiting further clarity.

Key Takeaways:

✅ Gold price climbs above $3,300 as the USD weakens.
✅ US court blocks Trump’s tariff agenda, citing constitutional limits under IEEPA.
✅ US Dollar Index falls to 99.70, erasing early gains.
✅ Investor uncertainty rises; businesses pause investment decisions.

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