According to Commerzbank’s Head of FX and Commodity Research Thu Lan Nguyen, the value of Gold briefly dropped below USD 3,250 per troy ounce on Thursday due to news that a US court deemed most of President Trump’s imposed tariffs to be illegal. The court stated that only the US Congress has the authority to regulate trade with other countries. However, Gold quickly rebounded as it was uncertain if the tariffs would be immediately lifted. Later on, an appeals court put the ruling on hold, allowing the tariffs to remain in effect temporarily. This ruling primarily pertains to reciprocal tariffs and not specific tariffs on certain industries like aluminium and steel. As a result, the US government may turn its focus to these sector-based tariffs instead. This ongoing trade conflict suggests a bleak economic outlook and strengthens expectations for interest rate cuts. With demand for safe investments remaining high, Gold may continue to benefit from these circumstances.