Gold climbed for second session

1 July 2025

Market comments on behalf of Van Ha Trinh, Financial Markets Strategist at Exness

Gold extended its gains for a second consecutive session on Tuesday, supported by a weaker dollar and sustained safe-haven demand. The metal could find support in increasing investors’ concerns and uncertainty.

Gold benefited from the dollar’s decline. The currency remained under pressure amid growing concerns over the US fiscal trajectory. Trump’s tax and spending bill is expected to widen the deficit by USD 3.3 trillion over the next decade. At the same time, uncertainty surrounding global trade persists, with President Trump threatening fresh tariffs on Japan and other trading partners just ahead of the July 9 deadline, which could drive inflows toward gold.

Market expectations for Fed easing remain supportive. Remarks from Chair Powell suggest that monetary easing remains on the table, particularly if economic indicators soften further. Market participants expect the monetary easing cycle to resume in September, weighing down on US treasury yields and increasing gold’s appeal.

 

Zaid Barem / ymm