WASHINGTON (dpa-AFX) - Gold prices traded lower for a fourth consecutive session on Thursday in the wake of hawkish FOMC minutes and a federal court ruling against U.S. President Donald Trump's 'liberation day' trade tariffs.
That said, there was some intraday recovery from over a one-week low following a modest pullback in the dollar index and fresh Sino-U.S. tensions after the U.S. government reportedly imposed new export restrictions on a range of goods shipped to China.
Spot gold dipped 0.3 percent to $3,279.96 per ounce in European trade, while U.S. gold futures were down 0.6 percent at $3,301.90.
Traders trimmed rate cut bets following hawkish minutes from the Federal Reserve's May 6-7 meeting.
'Almost all' Fed officials at their last meeting acknowledged they could face 'difficult tradeoffs' in coming months in the form of rising inflation alongside rising unemployment.
Given the potential effects of tariff increases, analysts say that the Fed will keep policy options open and adopt a wait and watch approach on rates till September 2025.
Meanwhile, a U.S. trade court blocked President Trump's 'Liberation Day' import tariffs from going into effect, ruling that he did not have 'unbounded authority' to tax imports from nearly every country.
The decision by the Manhattan-based three-judge Court of International Trade boosted risk appetite and weakened demand for safe-haven assets.
In economic releases, U.S. GDP growth data for the first quarter, weekly jobless claims figures, core PCE prices data for the first quarter and pending home sales data for April may garner some attention in the New York session.
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