Gold prices rebounded from a weekly low of $3,245 and climbed past $3,300 on Thursday, helped by a weaker US jobs report, as markets cheered a US court's decision to block US President Donald Trump's tariffs. At the time of writing, XAU/USD was trading at $3,318, up 0.94%.

The US Labor Department revealed that the number of Americans filing for unemployment benefits exceeded estimates and the previous week's report.

The report adds pressure on the Federal Reserve (Fed) to ease policy as the risk of high unemployment has increased. This, along with confirmation of a contraction in US Gross Domestic Product (GDP) in Q1 2025, sent the US Dollar lower, boosting the bullion's prospects.

Late on Wednesday, Bloomberg reported that a three-judge panel of the US Court of International Trade ruled that the Trump administration "wrongly applied a 1977 law in imposing its Liberation Day tariffs on dozens of countries and therefore the tariffs were illegal."

The US court ruling exempted Mexico, Canada and China from previously imposed tariffs, which were imposed over US border security and fentanyl trafficking. However, tariffs on aluminum, autos and steel remain unaffected. The Trump administration is appealing the ruling, and Goldman Sachs expects the broad tariff policy to remain in place through other legal means.

The headlines of Trump's blockade sparked a rally in global equities. Gold fell to a weekly low, while the US Dollar Index (DXY), a gauge of the greenback's value, hit a weekly high of 100.54.

The DXY, which tracks the US dollar against a basket of six currencies, fell 0.50% to 99.32.

This week, bullion traders are eyeing the release of the Fed's favorite inflation gauge, the Core Personal Consumption Expenditures (PCE) Price Index. (alg)

Source: FXstreet