The Trump Tax Reform Bill Sparks US Deficit Concerns, Dollar Remains Weak

On July 2nd, after the U.S. Senate passed President Trump's trillion-dollar tax bill, investors voiced concerns regarding the U.S. fiscal situation, which led to the continuous upward trend of gold. The price of gold remained close to $3340 per ounce and had risen by 2% in the previous two trading days. The latest version of the presidential signature bill, which is expected to expand the deficit by $3.3 trillion over the next 10 years, is currently awaiting approval in the House of Representatives. If it is passed, this may be beneficial to gold as a safe-haven asset. Concerns about Trump's disruptive trade and economic agenda have caused investors to reassess their allocation to U.S. assets. The continuous weakness of the U.S. dollar, which is currently at its lowest level since 2022, has further supported the price of gold, offsetting the pressure caused by a Tuesday report showing an increase in U.S. job vacancies and a rise in U.S. Treasury yields. (FXStreet)