Gold posted modest gains on Monday, climbing 0.3% to $3,284.98 per ounce, breaking a two-week losing streak. The precious metal benefited from a 0.2% decline in the US dollar as markets closely watch two key developments: ongoing Senate negotiations over President Trump’s massive $4.5 trillion tax bill and trade talks with multiple nations.
The tax package faces resistance from fiscal conservatives concerned about ballooning deficits, with voting expected to extend into Monday. On the trade front, uncertainty remains high with just 10 days until Trump’s country-specific tariffs resume on July 9. While White House advisers suggest progress on several trade agreements, previous deals with China and the UK indicate these may lack comprehensive solutions.
Gold has surged 25% year-to-date, trading about $210 below April’s record high, driven by geopolitical tensions and trade uncertainties. However, the metal faces its first monthly decline of 2025 as Middle East conflicts de-escalate and US economic sentiment improves. Other precious metals including silver, platinum, and palladium also posted gains.