By: Creamer media

Bullion fell as much as 1.1% on Thursday, adding to a 2% loss in the previous three sessions, as the US Court of International Trade deemed the bulk of Trump’s tariffs illegal, further strengthening the dollar. A stronger greenback makes gold more expensive for most buyers.

The Trump administration filed a notice that it was appealing the ruling, which suspends most of its tariffs. The US Supreme Court may ultimately have the final say in the high-stakes case that could impact trillions of dollars in global trade.

Analysts said the court ruling, which deals a major blow to a pillar of the Republican’s economic agenda, could dim some of gold’s haven appeal.

“The news out of the US could see some significant downside for gold in the sessions ahead as haven trades are pulled,” said Nick Twidale, chief market analyst at AT Global Markets in Sydney, adding that prices could unwind further in the current trading session before finding some support. “The longer term trend is still in place so we will find some bargain hunters at some point in the day.”

Elsewhere, strong tech earnings from Nvidia on Wednesday saw an acceleration of risk appetite returning to Wall Street — also adding to bearish headwinds for gold. The positive results came after US consumer confidence figures published earlier in the week showed a sharp rebound amid optimism about improving US relations with some of its trading partners.

The US trade court ruling is the latest twist in the market uncertainty unleashed by Trump’s aggressive tariff agenda, which has driven investors to seek safety in gold, a traditional haven. While prices are currently trading about $240 below an all-time-high set last month, the precious metal is still up by more than a quarter this year, also thanks to central bank buying.

Spot gold was down 0.7% to $3 264.15 an ounce as of 8:40 a.m. in Singapore. The Bloomberg Dollar Spot Index was up 0.3%. Silver and and platinum fell, while palladium was little changed.