Gold price climbs over 1% on trade uncertainty

Gold prices climbed by more than 1% on Tuesday, as continued weakness in the US dollar and economic uncertainty surrounding global trade ignited demand for the safe-haven metal.Spot gold rose 1.1% to $3,340.90 per ounce by noon ET, after hitting a weekly high of $3,357.85. US gold futures shot up 1.4% to $3,353.80 per ounce in New York.Meanwhile, the dollar softened as US President Donald Trump’s massive tax cut and spending bill stoked fiscal worries, which, combined with concern over trade deals, weighed on market sentiment.Rhona O’Connell, head of market analysis for EMEA & Asia at StoneX, said the rally in gold is a function of “bargain hunting, dollar weakness (and) continued uncertainty” about the July 9 tariff deadline set by Trump.Gold is likely to average $3,000/oz for the fourth quarter and possibly even lower by year-end, O’Connell added.US debt, tariff worriesEarlier in the day, US Senate Republicans were struggling to pass Trump’s sweeping tax and spending bill amid concerns that the legislation would add about $3.3 trillion to the nation’s debt pile.On the trade front, Treasury Secretary Scott Bessent warned on Monday that countries could be notified of sharply higher tariffs before July 9, when Trump’s 90-day pause on ‘Liberation Day’ tariffs expires.Investors are also watching out for US ADP employment data due on Wednesday, and Thursday’s payrolls data for cues on the Federal Reserve’s interest rate policy path.Fed Chair Jerome Powell, addressing a forum in Portugal, said the US economy “was in a pretty good position,” adding that inflation was behaving as expected and hoped, excluding the tariffs.Markets are currently expecting two rate cuts totaling 50 basis points this year, starting in September, according to Reuters.A lower interest rate, coupled with the ongoing trade concerns, would bode well for gold. So far this year, the precious metal has risen by nearly 27%.(With files from Reuters)Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com