Gold held an advance, with investors weighing concerns about the US fiscal position after the Senate passed US President Donald Trump’s multi-trillion-dollar tax bill.
Bullion held near US$3,340 an ounce, after rallying 2% over the previous two sessions. The latest version of the the president’s signature legislation — which is expected to widen the deficit by US$3.3 trillion over the next decade — now heads to the House for approval.
If it passes, that could benefit gold’s appeal as a haven, with investors already reconsidering their allocations to US assets amid Trump’s disruptive trade and economic agendas.
Persistent weakness in the US dollar — which is trading at the lowest level since 2022 — continued to support gold, offsetting pressure from rising Treasury yields after a report on Tuesday showed an increase in US job openings.
While higher yields tend to pose a headwind for non-interest-bearing bullion, a weaker greenback makes the metal cheaper for most buyers as it’s priced in the US currency.
Gold is up by more than a quarter this year and is trading around US$160 short of a record high set in April, supported by demand for havens as investors grappled with heightened geopolitical and trade tensions. The rally has also been supported robust central-bank purchases.
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Spot gold was little changed at US$3,341.84 an ounce as of 8.09am in Singapore. The Bloomberg Dollar Spot Index slipped 0.1%, and is down 0.6% so far this week. Silver and palladium edged higher, while platinum was flat.
Looking ahead, the government’s June employment report, due Thursday, is expected to show a slowdown in nonfarm payroll growth and an uptick in the unemployment rate.
US Federal Reserve policymakers have consistently characterized labor-market conditions as strong in recent weeks, and any signs of softness could bolster the case for interest rate cuts — a scenario that tends to benefit gold.
Investors also continued to monitor US trade negotiations, with Trump saying he is not considering delaying his July 9 deadline for higher tariffs to resume. Still, there are signs that traders are becoming increasingly less worried by the president’s unpredictable stance on levies, as the economy remains healthy and Corporate America appears to be taking his policies in its stride, for now.
