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

BlockBeats News, July 2nd, following the U.S. Senate's passage of President Trump's trillion-dollar tax bill, investors expressed concerns about the U.S. fiscal situation, causing gold to continue its upward trend. The price of gold remained near $3340 per ounce, rising 2% in the two previous trading days.

The latest version of the presidential signature bill, expected to expand the deficit by $3.3 trillion over the next 10 years, is currently awaiting approval in the House of Representatives. If passed, this may benefit gold as a safe haven asset. Concerns about Trump's disruptive trade and economic agenda have led investors to reconsider their allocation to U.S. assets.

The continued weakness of the U.S. dollar, currently at its lowest level since 2022, has further supported the price of gold, offsetting the pressure from a Tuesday report showing an increase in U.S. job vacancies leading to a rise in U.S. Treasury yields. (FXStreet)