Gold prices were steady in Asian trade on Wednesday, extending their two-day rally as investors remained cautious ahead of key U.S. fiscal and trade decisions. The passage of President Donald Trump’s sweeping tax-and-spending bill—a move expected to add $3.3 trillion to the national debt—continued to support bullion’s safe-haven appeal.
Key Market Snapshot
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Spot Gold: $3,337.25/oz (flat)
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Gold Futures (August): $3,347.40/oz (-0.1%)
The metal is up over 2% this week, rebounding sharply from last week’s selloff sparked by the Israel-Iran ceasefire. Current gains are driven by renewed fiscal risks and geopolitical uncertainty, particularly around Trump’s July 9 tariff deadline.
U.S. Deficit and Interest Rate Path in Focus
The Senate’s approval of Trump’s “megabill” — which combines major tax cuts with increased defense and immigration spending — has triggered renewed concerns about long-term fiscal stability. Investors are closely watching how this deficit expansion might influence Federal Reserve policy.
Fed Chair Jerome Powell reiterated Tuesday that policymakers would adopt a wait-and-see approach in response to potential economic fallout from Trump’s tariff regime. While Powell stopped short of endorsing rate cuts, markets took his comments as slightly dovish.
With inflation cooling and recession risks rising, expectations for a rate cut by September are rising.
What to Watch Next: Nonfarm Payrolls & Fed Reaction
Markets now turn their attention to the U.S. nonfarm payrolls report on Thursday, which could further tilt expectations around monetary policy.
🔍 Use FMP’s Economics Calendar API to track key macro releases such as:
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Nonfarm payrolls
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Unemployment rate
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Average hourly earnings
These will help gauge how soon the Fed may shift its stance, directly impacting gold’s momentum.
Earnings and Gold Correlation: Look to Miners
While gold prices trend upward, it’s equally important to watch how this impacts companies in the gold mining sector.
🧾 The Earnings Calendar API allows real-time tracking of upcoming earnings from major gold miners like:
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Newmont Corporation (NYSE:NEM)
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Barrick Gold (NYSE:GOLD)
Higher gold prices often translate into stronger profit margins for miners, making earnings season a valuable signal for investors.
Outlook
With U.S. fiscal concerns intensifying and the Fed signaling caution, gold continues to act as a hedge against both economic and policy risk. Whether the metal can sustain its gains may depend on this week’s payroll data and further clarity around global trade policy.
