Gold prices recovered on Thursday after falling to a one-week low, climbing back above $3,300 per ounce.
The rebound came after a court blocked a wide-ranging tariff plan announced by President Trump; the White House has said it will appeal the decision. Markets reacted to the legal setback as investors reassessed the potential economic impact of the tariffs.
Traders are focused on Friday’s key U.S. inflation release—the personal consumption expenditures (PCE) index—which is closely watched by the Federal Reserve when setting monetary policy. Strong or weak inflation readings could influence expectations for interest rates and thus affect demand for non-yielding assets like gold.
Gold’s recovery has also been supported by a softer dollar, which makes the metal cheaper for holders of other currencies, and by persistent economic uncertainty that keeps demand for safe-haven assets elevated. Investors often turn to gold when geopolitical or policy risks rise, seeking to preserve value amid market volatility.
Market participants will be watching both the PCE figures and any developments in the tariff appeal closely. Together, these factors will likely shape near-term price momentum for gold as traders weigh inflation prospects, Fed policy signals, and the broader economic outlook.