02:00 PM EDT, 05/29/2025 (MT Newswires) -- (Updates prices.)

Gold traded higher mid-afternoon on Thursday as the dollar dropped after a court blocked most of President Donald Trump's tariffs while the U.S. economy weakened less than expected in the first quarter.

Gold for August delivery was last seen up US$20.80 to US$3,343.20 per ounce.

The rise comes after the U.S. Court of International Trade on Wednesday ruled Trump exceeded his authority by imposing high tariffs on most of the country's trading partners using emergency powers. Levies on steel, aluminum and cars remain in place.

U.S. stock exchanges rose on a calming outlook for global trade flows. While the ruling favors risk assets, it could slow safe-haven demand for the metal.

"While the US Court of International Trade's ruling on the legality of Trump's tariffs does dim some of gold's safe-haven appeal, given the potential for appeals and pushback from the administration, as well as other flavors of uncertainty in the current environment, we do not think that the floor necessarily falls out from under gold. In fact, we think that there is a pretty firm floor for gold around our Q2 middle scenario price of $3013/oz, and even that may not be tested in the near term," Christopher Louney, a commodities strategist at RBC Capital Markets, wrote.

The U.S. Bureau of Economic Analysis on Thursday issued its first revision to U.S first-quarter economic growth. The bureau reported the country's gross domestic product fell by 0.2% in the period, down from its initial estimate for a drop of 0.3% and under expectations for a drop of 0.4%, according to MarketWatch.

The dollar moved lower following the data, with the ICE dollar index last seen down 0.56 points to 99.31. Treasury yields also fell, with the U.S. two-year note last seen paying 3.945%, down 5.5 basis points, while the yield on the 10-year note was also down 5.5 points to 4.428%.