Gold Extends Decline as Traders Weigh Progress on US Trade Deals
(Bloomberg) -- Gold rose, supported by a dip in the dollar, as Senate negotiations continued over President Donald Trump’s $4.5 trillion tax package.
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Bullion gained 0.6% on Monday, following two consecutive weekly declines. Republicans are seeking to convince holdouts to support the tax bill for final passage, amid concerns that it will further swell US deficits.
Still, the precious metal is on track to end June flat for a second straight month as tensions in the Middle East ease, while consumer sentiment and inflation expectations improved in the US.
The potential approval of Trump’s tax bill and trade deals may eventually cool demand for the metal as concerns about US growth subside, Citigroup Inc. analysts said. Citi sees gold falling below $2,700 an ounce by the second half of 2026, and “strongly recommends that gold producers take insurance against downside in prices from current levels”.
For the year, gold is still up by about a quarter and is trading around $210 short of April’s record, supported by demand for havens as investors grappled with elevated geopolitical and trade tensions.
Spot gold traded at $3,292.92 an ounce as of 12:30 p.m. in New York. The Bloomberg Dollar Spot Index slipped 0.3%. Silver was little changed, while platinum and palladium slipped.
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