Gold rose more than 1% as the US dollar remained weak, sending the US Dollar Index (DXY) to a three-year low and the US Senate approved Trump’s tax bill, which is set to be sent to the House of Representatives.
At 9:30 am, gold was at $3,334.61, down 0.11% since it opened in early Asian trading on Wednesday.
Bloomberg reported that the bill passed by a 51-50 vote, with Vice President JD Vance casting the deciding vote.
The package, which is now headed to the House of Representatives, includes $4.5 trillion in tax cuts and $1.2 trillion in spending cuts.
However, the approval has yet to grab the attention of bullion traders. Economic data from the US continues to be watched, supporting Fed Chairman Jerome Powell’s ‘wait and see’ stance.
The US Job Openings and Labor Turnover Survey (JOLTS) report showed job openings rose in May, beating economists' expectations.
Fed Chairman Jerome Powell recently gave slightly hawkish remarks, indicating a cautious stance on monetary policy.
In addition, US Treasury Secretary Scott Bessent warned that the country may be announced with higher tariffs by the July 9 deadline.
A shorter trading week in conjunction with the US Independence Day celebration on July 4 will see the focus on employment data such as the ADP report, initial jobless claims, and Nonfarm Payrolls (NFP) for June.
