PRECIOUS-Gold touches over one-week low after US court blocks Trump's tariffs

May 29 (Reuters) - Gold hit a more than one-week low on Thursday, as the dollar rallied and risk sentiment improved after a U.S. federal court blocked President Donald Trump's "Liberation Day" tariffs from going into effect.

FUNDAMENTALS

Spot gold XAU= was down 0.5% at $3,262.99 an ounce, as of 0057 GMT, its lowest since May 20.

U.S. gold futures GCcv1 dropped 1.1% to $3,259.50.

A U.S. trade court on Wednesday blocked Trump's tariffs from going into effect, ruling that the president overstepped his authority by imposing across-the-board duties on imports from nations that sell more to the United States than they buy.

The White House quickly appealed the decision, and could take it all the way to the Supreme Court if needed, but in the meantime it offered some hope that Trump might back away from the highest tariff levels he had threatened.

The dollar index .DXY jumped 0.5% to a more than one-week high, making greenback-priced gold more expensive for other currency holders, while U.S. Treasury yields also rose. USD/ US/

Asian shares and Wall Street futures climbed in Asia on Thursday. MKTS/GLOB

U.S. Federal Reserve officials at their May 6–7 meeting acknowledged possible "difficult tradeoffs" ahead, with rising inflation and unemployment, and warned about growing recession risks, according to meeting minutes on Wednesday.

Investors now await U.S. GDP data later in the day, followed by Friday's Personal Consumption Expenditures (PCE) numbers and comments from U.S. central bank officials for more cues on interest rates.

SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.34% to 925.61 metric tons on Wednesday from 922.46 tons on Tuesday. GOL/ETF

Elsewhere, spot silver XAG= eased 0.2% to $32.93 an ounce, platinum XPT= was steady at $1,074.90 and palladium XPD= edged 0.3% higher to $964.75.

DATA/EVENTS (GMT)