Gold prices held steady in Asian trade on Wednesday after sharp gains in the past two sessions, supported by U.S. fiscal deficit concerns as the Senate passed President Donald Trump’s tax-and-spending megabill.
Bullion was also supported by uncertainty over U.S. trade deals ahead of Trump’s July 9 tariff deadline.
Spot Gold was largely unchanged at $3,337.25 an ounce, while Gold Futures for August edged 0.1% lower to $3,347.40/oz by 01:52 ET (05:52 GMT).
Gold has risen more than 2% this week so far, erasing losses from last week when Israel-Iran ceasefire reduced its safe-haven appeal.
Trump’s tax-cut bill clears Senate, sparks national debt concerns
Senate Republicans narrowly passed Trump’s sweeping tax-cut and spending bill on Tuesday.
The bill—aimed at cutting taxes, curbing social programs, and increasing military and immigration enforcement funding—is projected to add $3.3 trillion to the national debt.
It will now move to the House of Representatives for potential final approval, with Trump aiming to sign it into law by the July 4 Independence Day holiday.
Meanwhile, Federal Reserve Chair Jerome Powell repeated on Tuesday that the central bank will wait and learn about tariff impacts before cutting rates, defying Trump’s calls for swift, deep cuts.
Investors parsed Powell’s recent comments as slightly dovish as he did not rule out the chances of a rate cut next month.
