Gold remains supported by renewed tariff threats and US Dollar weakness
Gold (XAU/USD) is trading higher on Friday as news about United States (US) President Donald Trump’s passage of the “Big, Beautiful, Bill” filters through markets. With markets closed in the US in celebration of Independence Day, XAU/USD is trading above $3,330 at the time of writing.
Liquidity is expected to remain light in the US following the holiday weekend, which could make bullion sensitive to developments that may influence risk sentiment.
Risk appetite improved this week, following reports that the US was making progress in trade talks ahead of the July 9 deadline. However, the mood has shifted slightly on Friday as tariff uncertainty and President Trump’s threats to send letters to nations dictating the amount that they will pay to do business with the US.
On Friday, Trump stated that “We’re probably going to be sending some letters out, starting probably tomorrow, maybe 10 a day to various countries saying what they’re going to pay to do business with the US,” according to Reuters.“They’ll range in value from maybe 60% or 70% tariffs to 10% and 20% tariffs,” was the range that Trump gave Bloomberg reporters.
Looking ahead, market focus will shift to ongoing trade negotiations, which could introduce fresh volatility. If trade talks deteriorate or geopolitical tensions rise, investors may rotate into safe-haven assets like Gold.
Additionally, the proposed “Big, Beautiful, Bill” was passed by the House of Representatives late Thursday following the release of crucial economic data from the US.
Source: FXStreet
