Happy Friday, trader. Welcome to our weekly market packaging, we look back over the past few trading days with a focus on market news, economic data and headlines that have had the greatest impact on gold prices and other key related assets and may continue in the future.
Gold fell to a weekly low of $3,260 per ounce after the court ruled against the Trump administration's tariff authorities.
The federal appeals court later stopped and ruled, triggering a rebound in gold prices.
The volatile response of the US dollar to legal and policy shifts plays a key role in the gold movement.
Gold ended this week at $3,300 per ounce ahead of the release of key June economic data.
Similar to the previous one, the gold trading week for this holiday was largely determined by investors and traders’ reactions to U.S. fiscal policy headlines, with two significant differences: This week’s market development headlines are almost tied to the latest momentum surrounding senior Trump, with little heights of budget votes and budget votes, and not about budget votes. Gold prices’ reaction to tariff news has been priced through the dollar.
During Monday’s Memorial Day market holiday, the overnight opening on Tuesday reduced the Gold Point market’s sold-out from $3,340 per ounce to about $3,310. Through Tuesday’s trading and the first half of New York, gold has maintained a steady enough interest among traders to stay or below the $3,300 level, but fewer bids have been higher.
With most of the quiet calendar of macroeconomic data provided this week, it looks like (after the FOMC meeting record is no obvious release), yellow metals may have been hovering at that level all week.
However, trade and price volatility in multiple asset classes, including gold, surged Wednesday afternoon as news from the U.S. Court of International Trade announced a decision that the Trump administration has no power in the U.S. Constitution to obtain most tariffs it declares and/or threatens to declare and/or threaten to trade partners.
One obvious effect of this announcement was the climb of the dollar, first of which was slower, then Sharp, which made the gold point price slide in the other direction. By the U.S. market Wednesday night (just before the first opening clock of the Asian Thursday meeting), precious metals fell to weekly lows at $3,260 per ounce in the spot market and rebounded from it with support.
It is hard to say that Gold's $3,300 (just in its south) recycling is due to investors stepping into making Gold suddenly "cheap", because less than 24 hours after the announcement of the Trade Court's ruling on the Trump administration ruling, the federal appeals court "temporarily suspended" the ruling and violated it and raised the argument in the dispute.
While that didn't change anything in a direct sense, the news drove the drama (but proportional) of Wednesday's deal. The dollar once again slammed the headlines, with green trade value falling with partners' trade value, gold spot prices rebounded as high as $3325/ounce at noon, and then adjusted and placed, looking like interchangeable support and resistance, which in the $3300 it has largely continued on the line at Friday's meeting.
Given that the decision is now likely to move to the Supreme Court on a determined date, the headlines that the U.S. president expects trade policies and their potential losses may actually slow down.
Ultimately, we will have macro data to counter again as next week brings some key ISM survey reads and closing May assignment reports.
Meanwhile, traders, I hope you can enjoy the weekend safely in the next few days. After that, I will come back here for another market review next week.