Trump’s tariffs to remain in effect after court grants stay
Gold wedding purchases in India cool
(Updates for market closer)
May 30 (Reuters) – Gold prices slipped on Friday as the dollar edged higher and markets digested the latest tariff developments, while a softer inflation report kept hopes for a U.S. rate cut alive.
Spot gold was down 0.7%, at $3,293.59 an ounce, as of 02:26 pm ET (1826 GMT) and was down 1.9% so far this week.
U.S. gold futures settled 0.9% lower at $3,315.40.
The dollar index rose 0.1%, making gold more expensive for other currency holders.
A federal appeals court temporarily reinstated the most sweeping of President Donald Trump’s tariffs on Thursday, a day after a U.S. trade court ruled that Trump had exceeded his authority in imposing the duties and ordered an immediate block on them.
“Gold at this point in time is pulling back off these recent highs and is in a consolidation period,” said David Meger, director of metals trading at High Ridge Futures.
“Gold is under slight pressure as we’re seeing a little lesser need for safe-haven but it does look like there is going to be significant push back from Trump and that will eventually help prices.”
On the data front, the U.S. Personal Consumption Expenditures Price index (PCE) saw a year-on-year increase of 2.1% in April, versus a 2.2% forecast.
After the report, traders continued to bet that the U.S. central bank will cut its target for short-term borrowing costs in September.
Bullion, which thrives in a low-interest rate environment and is also used to hedge against inflation and uncertainty, hit a record high of $3,500.05 in April.
Elsewhere, physical gold demand in India was subdued this week, as an uptick in domestic prices and a winding up of the wedding season kept buyers at bay.
Spot silver fell 1.2% to $32.94, platinum eased 2.5% to $1,055.05 and palladium dropped 0.6% to $967.30. (Reporting by Ashitha Shivaprasad in Bengaluru. Editing by Jane Merriman and Mohammed Safi Shamsi)
