Gold News: Tariff Uncertainty Sparks Gold Rally From One-Week Low

Gold Prices Rebound as Dollar Rally Stalls Following Tariff Ruling

Gold edged higher on Thursday after recovering from earlier losses triggered by a brief surge in the U.S. dollar and Treasury yields. The yellow metal dipped to a one-week low early in the session as safe-haven demand favored the dollar following a U.S. federal court’s surprise block of President Trump’s latest tariff initiative. However, a quick reversal in dollar strength allowed gold to claw back gains.

Court Ruling Against Trump’s Tariffs Sparks Dollar Volatility

The U.S. Court of International Trade ruled that President Trump had overstepped his authority by imposing blanket tariffs on imports under the International Emergency Economic Powers Act (IEEPA). The decision halted the so-called “Liberation Day” tariffs and cast uncertainty over future trade policy. The administration filed an immediate appeal, signaling the legal battle could escalate to the Supreme Court.

The court’s move initially sent the dollar sharply higher on safe-haven flows, with the greenback touching a two-week high against the yen and posting gains against the Swiss franc. However, sentiment reversed mid-session as traders weighed the prospect of prolonged legal uncertainty rather than immediate tariff enforcement. The dollar index fell off session highs, easing pressure on gold.

Treasury Yields Rise as Fed Rate Cut Odds Ease

U.S. Treasury yields climbed, adding weight to gold’s early weakness. The 10-year yield rose to 4.53%, while the 30-year hit the closely watched 5% level. Minutes from the latest Fed meeting highlighted concerns that inflation could remain elevated, particularly if trade tensions persist. Traders scaled back expectations for a July rate cut to just 20%, with September odds at around 60%, down from earlier in the month.

Technical Levels Offer Gold Buyers Key Support

Gold found support near the 50-day moving average at $3222.70, a level that has consistently guided market direction since January. Buyers stepped in as the market neared this zone, which coincides with a cluster of minor pivots between $3277.91 and $3328.38. This confluence of technical support helped stabilize prices and attracted renewed buying interest after the dollar’s retreat.

Gold Prices Forecast: Legal Uncertainty Supports Bullish Rebound

While U.S. yields remain elevated and the dollar holds above key levels, Thursday’s court ruling has introduced a new layer of legal and political uncertainty that could support gold in the near term.

The lack of a definitive resolution to Trump’s tariff ambitions, combined with tempered Fed rate cut expectations, keeps risk sentiment fragile.

With gold holding above its 50-day moving average and buyers responding to technical cues, the near-term outlook leans bullish, particularly if the dollar remains vulnerable to headline-driven reversals.

More Information in our Economic Calendar.