Gold prices have dropped following a judicial decision regarding "Liberation Day" fees.

Gold prices witnessed a decrease to their lowest levels in over a week during trading on Thursday, May 29, following unexpected U.S. trade developments. This decline came after a federal court ruled to halt the implementation of the "Liberation Day" tariffs imposed by President Donald Trump on imports.

On the market front, the spot gold price dropped by 0.5% to reach $3270 per ounce, marking its lowest level since May 20.

The judicial decision came on Wednesday, as a U.S. trade court suspended the enforcement of these tariffs, deeming that Trump had "exceeded his authority" by imposing comprehensive tariffs on imports from countries with a trade surplus with the United States.

On April 2, the U.S. President announced the imposition of "reciprocal tariffs" on several countries, sparking global concerns about the possibility of an economic recession. However, many of these tariffs, which targeted specific countries, were temporarily suspended a week after their announcement.

Following the judicial ruling, the dollar strengthened, making gold priced in it more expensive, while futures contracts in Wall Street and Asian markets saw a significant increase. In contrast, the Trump administration announced filing an appeal against the decision, hinting at the possibility of escalating the case to the Supreme Court if necessary.