FX.co ★ Gold Rises for 2nd Day

Gold surged to approximately $3,310 per ounce on Tuesday, building on gains from the prior session. This rise was largely driven by a weakening US dollar, which fell amid apprehensions about the increasing US government deficit. Investors are watching closely as a significant tax-reducing and spending bill gradually progresses through the Senate. In addition, uncertainties surrounding trade agreements with key countries have bolstered gold's value. President Donald Trump has issued a warning about the potential implementation of new tariff levels on Japan, just a week before the deadline of July 9, when higher tariffs may be reintroduced. Moreover, the Federal Reserve's anticipated interest rate cuts later in the year continue to enhance gold's attractiveness as an investment. Market participants now await crucial economic reports, including US job openings, the ADP employment report, and the non-farm payrolls figures, all expected this week, to gain further insight into the Federal Reserve's future policy decisions.