Gold firms on weaker dollar, US tariffs and fiscal uncertainty
Gold prices rose more than 1% on Tuesday as a weaker dollar and uncertainty over U.S. tariffs, along with concerns about the country’s fiscal outlook, drove investors towards safe-haven assets.
Spot gold climbed 1.4% to $3,349.84 an ounce while U.S. gold futures jumped 1.7% to $3,363.80. The U.S. dollar weakened to its lowest level since early 2022, making gold less expensive for overseas buyers.
“The precious metal’s safe-haven appeal is being boosted by concerns over the U.S. fiscal outlook and ongoing tariff-related uncertainty as the Trump administration keeps all options on the table ahead of the looming July (tariffs) deadline,” said Ricardo Evangelista, senior analyst at brokerage firm ActivTrades.
President Donald Trump expressed frustration with U.S.-Japan trade negotiations on Monday and Treasury Secretary Scott Bessent warned that countries could be notified of sharply higher tariffs as a July 9 deadline approaches despite ongoing negotiations.
Markets are also focused on a vote over Trump’s sweeping tax cut and spending bill, adding to an already uncertain market environment.
Meanwhile, Trump continued to pressure the Federal Reserve to cut interest rates, sending Fed Chair Jerome Powell a list of global interest rates with handwritten notes.
“I expect prices to move higher in the near term, attracting additional buying interest as they approach $3,350, with the next significant resistance level around $3,370,” Evangelista said.
On the data front, markets are awaiting job openings numbers later on Tuesday, the ADP employment report on Wednesday and non-farm payrolls on Thursday.
Gold is viewed as a safe haven during times of economic uncertainty and tends to perform well when interest rates are low.
HSBC said in a note that it expects central bank gold purchases to moderate on further rallies above $3,300 and said they could increase if gold corrects nearer to $3,000.
Spot silver firmed 0.9% to $36.41 an ounce, platinum was down 0.1% at $1,351.80 and palladium gained 2.5% to $1,124.79.
Source : Reuters
