Gold prices did not fluctuate much during Asian trade on Wednesday, extending their two-day rally as cautious investors awaited major U.S. fiscal and trade decisions. The approval of President Donald Trump’s expansive tax-and-spending bill—is anticipated to add 3.3 trillion dollars to the national debt—has underpinned gold’s appeal as a safe-haven asset.

Market Overview

• Spot Gold: 3,337.25 dollars/oz (unchanged)
• Gold Futures (August): 3,347.40 dollars/oz (down 0.1%)

Gold has risen over 2 percent this week, rebounding sharply from last week’s selloff triggered by the ceasefire between Israel and Iran. Current gains are attributed to renewed fiscal concerns and geopolitical risk, notably surrounding Trump’s upcoming tariff deadline on July 9.

Focus on U.S. Deficit and Interest Rate Path

The Senate’s backing of Trump’s megabill, combining substantial tax reductions with heightened defense and immigration spending, has reignited worries about long-term fiscal stability. Investors are closely monitoring how this increasing deficit might impact Federal Reserve policy.

Fed Chair Jerome Powell reiterated the central bank’s intention to adopt a wait-and-see approach concerning any potential economic consequences from Trump’s tariff initiatives. Although Powell did not endorse immediate rate cuts, his statements were perceived as somewhat dovish.

As inflation eases and recession fears escalate, expectations for a rate cut by September are rising.

Looking Ahead: Nonfarm Payrolls and Fed Reaction

Attention now shifts to the upcoming U.S. nonfarm payrolls report on Thursday, which could influence market sentiment regarding monetary policy.

Economics Calendar API can be utilized to track vital macro releases like:

• Nonfarm payrolls
• Unemployment rate
• Average hourly earnings

These indicators will provide insight into how soon the Fed may change its stance, thus directly impacting gold prices.

Earnings and Gold Price Trends

As gold prices continue to rise, watching the impacts on gold mining companies becomes critical.

Earnings Calendar API allows for real-time tracking of upcoming earnings from principal gold miners such as:

• Newmont Corporation (NYSE:NEM)
• Barrick Gold (NYSE:GOLD)

Increased gold prices frequently lead to improved profit margins for mining companies, making earnings season a significant period for investors.

Outlook

With U.S. fiscal concerns growing and the Fed adopting a cautious stance, gold is serving as a hedge against both economic and policy-related risks. The sustainability of gold’s gains may hinge on this week’s payroll data and further clarity on global trade policies.