Gold firms on weaker dollar and US tariff, fiscal uncertainty
Gold prices rose over 1% on Tuesday as a weaker dollar and uncertainty over U.S. tariffs, along with concerns about the country's fiscal outlook drove investors toward safe-haven assets.
Spot gold was up 1.1% at $3,339.20 per ounce, as of 0824 GMT, while U.S. gold futures rose 1.3% to $3,352.00.
The U.S. dollar weakened to its lowest level since early 2022, making gold less expensive for overseas buyers.[USD/]
"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 deadline," said Ricardo Evangelista, senior analyst at brokerage firm ActivTrades.
"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."
President Donald Trump expressed frustration with U.S.-Japan trade negotiations on Monday as Treasury Secretary Scott Bessent warned that countries could be notified of sharply higher tariffs as a July 9 deadline approaches despite good-faith negotiations.
Markets are also focused on a vote over Trump's sweeping tax-cut and spending bill, adding to the 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 suggesting the U.S. rate should fall between Japan's 0.5% and Denmark's 1.75%.
Trump's constant tirade against the Fed and Powell has fueled investor worries about the central bank's independence and its credibility.
On the data front, markets are waiting for job opening readings due later in the day, the ADP employment report on Wednesday and non-farm payrolls on Thursday, for any hints on the Fed's monetary policy path.
Gold is seen as a safe haven during times of economic uncertainty and tends to perform well in low-interest rate environments.
Spot silver firmed 0.6% to $36.30 per ounce, platinum was down 1.3% to $1,334.67, while palladium gained 0.7% to $1,104.86.
