Gold remained near $3,330 an ounce after climbing about 2% over the previous two sessions, as markets absorbed the Senate’s approval of President Trump’s tax plan. That legislation, which could add roughly $3.3 trillion to the federal deficit over the next decade, may increase gold’s attractiveness as a safe-haven asset.
Attention now turns to the June employment report due Thursday, which is widely expected to show slower job growth and a modest rise in unemployment. Softer labor-market data could strengthen arguments for the Federal Reserve to cut interest rates, a development typically supportive for non‑yielding assets like gold.
Gold’s appeal has been reinforced by several factors: ongoing geopolitical tensions, continued central bank purchases, and sizable inflows into gold-backed ETFs. Although stronger-than-expected job openings data released on Tuesday reduced some market expectations for a July rate cut, the metal is still up more than 25% year-to-date and trades around $170 below its April record high.