Gold made modest gains on Monday, rising 0.3% to $3,284.98 per ounce and snapping a two-week losing streak. The precious metal was supported by a 0.2% decline in the US dollar as markets focused on two major developments: ongoing Senate negotiations over President Trump’s proposed $4.5 trillion tax plan and a series of international trade talks.
The proposed tax package is encountering resistance from fiscal conservatives worried about larger deficits, and votes were expected to continue into Monday. Meanwhile, trade negotiations remain a central concern for investors, with just 10 days until country-specific tariffs are scheduled to resume on July 9. White House advisers have indicated progress on several bilateral trade discussions, but recent agreements with China and the UK suggest that those advances may not fully resolve underlying issues.
Gold has rallied roughly 25% year-to-date, though it remains about $210 below the record high set in April. The rally has been fueled by geopolitical tensions and trade-related uncertainty, which typically boost demand for safe-haven assets. Still, the market recorded its first monthly decline of 2025 as tensions in the Middle East eased and US economic sentiment showed signs of improvement.
Other precious metals also benefited during the session. Silver, platinum and palladium posted gains alongside gold, reflecting a broader uplift in the metals complex as traders reassessed risk and dollar movements. Market participants are watching upcoming economic data releases and any further developments on the tax and trade fronts for clues on the next directional move in metals prices.
Looking ahead, analysts say gold’s direction will likely hinge on currency shifts, fiscal policy decisions in Washington, and progress or setbacks in international trade negotiations. Continued geopolitical flare-ups or renewed concerns about fiscal deficits could provide additional support for bullion, while sustained improvement in economic indicators and a firmer dollar would likely cap upside near recent highs.