Sky-rocketing gold prices hit a new peak as anticipation for interest rate reductions from the Federal Reserve mounts, while uncertainties surrounding tariffs persist.

The U.S. Court of Appeals for the Federal Circuit has ruled that President Trump exceeded his authority by imposing broad-based duties, a decision that does not directly impact the U.S. economy's signs of slower inflation and weaker job growth. The court's decision, made in a 7-4 vote on Friday, allows the tariffs to remain in place until mid-October, giving the administration time to appeal.

Since returning to office, Trump has imposed "reciprocal" tariffs on nearly all trading partners under the International Emergency Economic Powers Act, setting a baseline of 15%. However, the ruling only applies to these broad-based duties and does not affect the additional duties on steel, aluminum, autos, and goods, which fall under separate authorities.

The Fed has held the benchmark rate in the 4.25% to 4.5% range since December. Analysts expect a 25 basis-point reduction at the Fed's next meeting on Sept. 17, with a likelihood of 89.7%. This expected interest rate cut, along with Trump's persistent criticism of the Fed, has added to investor unease at a time when the U.S. economy is showing signs of slower inflation and weaker job growth.

Gold prices, driven by these growing expectations of a September interest rate cut, reached a new record high on Wednesday, reaching $3,547.09. However, the court's decision does not affect the U.S. Federal Reserve's expected interest rate cuts or the gold prices mentioned. As of 5:45 a.m. GMT, the price of gold slid back to $3,533.33 per ounce.

Trump announced that his administration will seek a swift ruling from the Supreme Court to overturn the appellate decision that found many of his tariffs unlawful. The person announced to handle the case before the U.S. Supreme Court is U.S. Solicitor General D. John Sauer.

At the Jackson Hole symposium in mid-August, Fed Chair Jerome Powell hinted at a potential shift, stating, "We're closely monitoring the implications of these developments and assessing their ramifications for the economic outlook." As the court battle continues, uncertainty remains over the future of the tariffs and their potential impact on the U.S. economy.

Sky-rocketing gold prices hit a new peak as anticipation for interest rate reductions from the Federal Reserve mounts, while uncertainties surrounding tariffs persist.