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Trump's tariffs to remain in effect after court grants

stay

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U.S. dollar up 0.2%

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Gold wedding purchases in India cool

(Updates after U.S. inflation data)

By Ashitha Shivaprasad

May 30 (Reuters) - Gold prices slipped on Friday as the

dollar edged higher and markets digested the latest tariff

developments, while a softer inflation report kept hopes for a

U.S. rate cut alive.

Spot gold was down 0.6% at $3,297.09 an ounce as of

09:38 am ET (1338 GMT) and was down 1.8% so far this week.

U.S. gold futures fell 0.7% to $3,295.40.

The dollar index rose 0.2%, making gold more

expensive for other currency holders.

A federal appeals court temporarily reinstated the most

sweeping of President Donald Trump's tariffs on Thursday, a day

after a U.S. trade court ruled that Trump had exceeded his

authority in imposing the duties and ordered an immediate block

on them.

"Gold at this point in time is pulling back off these recent

highs and is in a consolidation period," said David Meger,

director of metals trading at High Ridge Futures.

"Gold is under slight pressure as we're seeing a little

lesser need for safe-haven but it does look like there is going

to be significant push back from Trump and that will eventually

help prices."

On the data front, the U.S. Personal Consumption

Expenditures Price index (PCE) was up 2.1% year on year in April

versus a 2.2% forecast.

After the report, traders continued to bet that the U.S.

central bank will cut its target for short-term borrowing costs

in September.

Bullion, which thrives in a low-interest rate environment

and is also used to hedge against inflation and uncertainty, hit

a record high of $3,500.05 in April.

Elsewhere, physical gold demand in India was subdued this

week, as an uptick in domestic prices and a winding up of the

wedding season kept buyers at bay.

Spot silver fell 0.6% to $33.14, platinum

eased 1.6% to $1,065.50 and palladium dropped 1% to

$963.57.