Gold prices fell on Wednesday as global investors pivoted toward riskier assets following a U.S. federal court decision that partially invalidated President Donald Trump’s trade tariffs. The ruling triggered a surge in market confidence, pulling capital away from traditional safe-havens like gold.
Gold Retreats Amid Shifting Sentiment
Spot gold declined to $3,273.19 per ounce, while August futures slipped below $3,300. The yellow metal has shed approximately 2.5% this week, weighed down by profit-taking after posting record highs the previous week. A three-day rally in the U.S. dollar further pressured gold, which often moves inversely to the greenback.
Wednesday’s court decision by the U.S. Court of International Trade ruled that President Trump’s sweeping tariffs exceeded executive authority and must be subject to congressional oversight. While the White House swiftly filed an appeal, the ruling eased immediate uncertainties and drove a rebound in risk-on sentiment—benefitting equities but dragging down gold and the Japanese yen.
Markets now anticipate a possible softening or reversal of some tariffs, which had been key in driving up safe-haven demand earlier in the month.
Other Metals React
Elsewhere in the metals market, silver futures edged up 0.5% to $33.33 per ounce, while platinum gained 0.2% to $1,078 per ounce. Copper, often seen as a bellwether for global economic activity, also advanced modestly. London Metal Exchange copper futures rose 0.2% to $9,586 per ton, with U.S. copper trading at $4.95 per pound.
All eyes now turn to fresh U.S. economic data due Thursday, particularly the revised Q1 GDP figures. A previous contraction report had previously driven up gold prices.
Nigeria Explores Gold-Backed Naira Strategy
Meanwhile, in Nigeria, the Chartered Institute of Treasury Management has urged the Central Bank of Nigeria (CBN) to explore a partial gold-backed reserve system to stabilise the Naira. The proposal comes amid mounting pressure on Nigeria’s foreign reserves and increasing volatility in the currency markets.
Presenting the idea in Abuja, the Institute’s Registrar, Mr. Adedoyin Olumide, outlined a strategy in which the CBN would directly purchase gold from licensed local miners using Naira—an initiative aimed at boosting confidence in the local currency while reducing reliance on foreign exchange.
While Nigeria currently does not operate a gold standard, Olumide argued that partial reserve backing through gold could provide a buffer against currency depreciation and signal stronger monetary discipline.
The government has already taken steps in this direction. The National Gold Purchase Programme (NGPP) recently completed its first commercial transaction, with the Federal Government acquiring domestically mined gold using Naira. Fatimah Shinkafi, Executive Secretary of the Solid Minerals Development Fund, noted that the policy seeks to emulate other countries that support local currencies through gold acquisition, improving economic credibility and investor confidence.
Nigeria’s Growing Mineral Ambitions
Nigeria is ramping up efforts to diversify its economy away from oil. With estimated gold reserves of 200 million metric tons spread across Zamfara, Osun, Oyo, Kogi, Kwara, Kaduna, Bauchi, and Abia states, the country is strategically positioning itself as a major player in the gold value chain.
The Minister of Mines announced that Nigeria has signed a bilateral mining cooperation agreement with South Africa to boost sector development. The partnership will focus on sharing best practices, attracting investment, and expanding mining infrastructure.
Additionally, Nigeria has agreed to collaborate with South Korea on geological mapping, mineral exploration, and data sharing. Apart from gold, Nigeria holds substantial deposits of lithium, iron ore, zinc, and limestone—totaling 23 commercially viable minerals—signalling broader potential for mining-driven economic transformation.
As global markets digest Trump’s tariff setback and Nigeria pushes for a more resilient monetary policy, gold may remain volatile in the short term. However, domestic reforms and strategic reserves could see the Naira strengthened in the longer horizon, provided implementation matches ambition.
