Gold bars to be exempt from tariffs, White House clarifies
Investing.com-- Gold prices held steady in Asian trade on Wednesday after sharp gains in the past two sessions, supported by U.S. fiscal deficit concerns as the Senate passed President Donald Trump’s tax-and-spending megabill.
Bullion was also supported by uncertainty over U.S. trade deals ahead of Trump’s July 9 tariff deadline.
Spot Gold was largely unchanged at $3,337.25 an ounce, while Gold Futures for August edged 0.1% lower to $3,347.40/oz by 01:52 ET (05:52 GMT).
Gold has risen more than 2% this week so far, erasing losses from last week when Israel-Iran ceasefire reduced its safe-haven appeal.
Trump’s tax-cut bill clears Senate, sparks national debt concerns
Senate Republicans narrowly passed Trump’s sweeping tax-cut and spending bill on Tuesday.
The bill—aimed at cutting taxes, curbing social programs, and increasing military and immigration enforcement funding—is projected to add $3.3 trillion to the national debt.
It will now move to the House of Representatives for potential final approval, with Trump aiming to sign it into law by the July 4 Independence Day holiday.
Meanwhile, Federal Reserve Chair Jerome Powell repeated on Tuesday that the central bank will wait and learn about tariff impacts before cutting rates, defying Trump’s calls for swift, deep cuts.
Investors parsed Powell’s recent comments as slightly dovish as he did not rule out the chances of a rate cut next month.
Markets now await Thursday’s nonfarm payrolls report to gauge the chances of a July rate cut, while a reduction in September is largely priced in.
Trump’s July 9 tariff deadline looms
Expectations of lower interest rates and U.S. fiscal deficit concerns supported gold prices, while uncertainty over U.S. trade deals ahead of the looming July 9 deadline further aided sentiment.
Trump said he had no plans to extend the deadline and would instead notify countries of the tariff rates they will face through formal letters.
He said India may ease curbs on U.S. firms, opening the door to a deal, but added that he was doubtful about a deal with Japan.
Metal markets subdued, copper rises with dollar near 3-½ yr low
The US Dollar Index remained subdued in Asian trading hours, wallowing near its lowest level since February 2022.
Still, metal markets were largely subdued as investors sought clarity on trade deals and sectoral tariffs.
Silver Futures were largely muted at $36.05 per ounce, while Platinum Futures edged up 0.2% to $1,369.05.
Meanwhile, benchmark Copper Futures on the London Metal Exchange rose 0.4% $9,968.65 a ton, while U.S. Copper Futures jumped 1.6% to $5.1165 a pound.