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
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data promp...
Gold prices strengthened on Wednesday, supported by a weaker US dollar and falling US bond yields after the latest economic data reinforced the narrative that the Federal Reserve is likely to continue...
Gold experienced a slight correction in the European session on Tuesday (February 10th), but remained above $5,000/oz as the market held its breath ahead of a series of US data that could alter intere...
Gold held above the psychological $5,000 level at the start of the week, supported by a combination of factors that are "right" for the precious metal : physical demand from China, expectations of low...
Gold prices are still struggling to turn an intraday rebound into a sustained rally. After briefly falling to $4,654 (a four day low) and rebounding, prices were again rejected near $4,900. In the Eur...
Oil prices stabilized on Thursday (February 12th), as the market reassigned a risk premium to US-Iran tensions despite US inventory data showing swelling domestic supplies. This movement confirms one thing: geopolitical headlines are still more...
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data prompted market participants to shift expectations of...
The Hang Seng Index reversed its downward trend in Hong Kong on Thursday (February 12th), weakening by around 0.9% to around 27,000 after a strong session earlier. This decline halted the momentum of the short term rally, as investors began to...