Gold prices rebounded from a weekly low of $3,245 and moved above $3,300 on Thursday, supported by a weak US jobs report while markets cheered the US court’s decision to block President Trump’s tariffs. At the time of writing, XAU/USD was trading at $3,318, up 0.94%.

The US Department of Labor revealed that the number of Americans applying for unemployment benefits exceeded expectations and the previous week’s report.

The report increased pressure on the Federal Reserve (Fed) to ease policy as the risk of high unemployment increases. This, coupled with the confirmation of a contraction in US gross domestic product (GDP) in the first quarter of 2025, sent the US dollar into a decline, which boosted the outlook for gold.

Late Wednesday, Bloomberg revealed that a three-judge panel of the US Court of International Trade ruled that the Trump administration “misjudged the 1977 law to impose Liberation Day tariffs on dozens of countries, and therefore those tariffs are illegal.”

The US court’s decision exempted Mexico, Canada, and China from tariffs previously imposed over US border security and fentanyl trafficking. However, tariffs on aluminum, autos, and steel remain untouched. The Trump administration is appealing the ruling, and Goldman Sachs expects the broad tariff policy to remain in place through other legal means.

The news of Trump's block sparked a rebound in global stock markets. Gold prices fell to a weekly low, while the U.S. dollar index (DXY), a measure of the value of the U.S. dollar, reached a weekly high of 100.54.

The DXY, which tracks the value of the dollar against six currencies, fell 0.50% to 99.32.

This week, gold traders focus on the release of the Federal Reserve's favorite inflation indicator, the core personal consumption expenditures (PCE) price index.