{"id":23312,"date":"2025-07-04T09:45:23","date_gmt":"2025-07-04T09:45:23","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=23312"},"modified":"2025-07-04T09:45:23","modified_gmt":"2025-07-04T09:45:23","slug":"gold-steady-as-fiscal-concerns-boost-demand","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-eu\/analysis\/gold-steady-as-fiscal-concerns-boost-demand\/","title":{"rendered":"Gold steady as fiscal concerns boost demand"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/5-1-1024x536.png\" alt=\"\" class=\"wp-image-23315\" srcset=\"https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/5-1-1024x536.png 1024w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/5-1-300x157.png 300w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/5-1-768x402.png 768w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/5-1-500x262.png 500w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/5-1-400x209.png 400w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/5-1-350x183.png 350w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/5-1-200x105.png 200w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/5-1.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>Gold held steady this week as markets weighed strong US job data against rising concerns over fiscal policy and global tensions. While economic strength can pressure gold, safe-haven demand remains supported by uncertainty.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Gold holds on uncertainty<\/strong><\/h2>\n\n\n\n<p>Gold prices hovered close to $3,328 per ounce on Friday, largely unchanged from the previous day, as investors digested conflicting macroeconomic signals.<\/p>\n\n\n\n<p>The precious metal is poised to end the week with a 1.7% gain, buoyed by ongoing geopolitical tensions and fiscal uncertainty \u2013 despite strong US employment figures limiting further upside momentum.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Gold remained on track for a weekly gain despite falling on Thursday <a href=\"https:\/\/t.co\/orzVL2QP67\">https:\/\/t.co\/orzVL2QP67<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1940938931337306550?ref_src=twsrc%5Etfw\">July 4, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>A major catalyst this week was the approval of President Trump\u2019s expansive tax and spending legislation, which <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-07-03\/trump-s-tax-bill-a-guide-to-the-big-beautiful-bill-congress-passed\" target=\"_blank\" rel=\"noopener nofollow\" title=\"passed through Congress on Thursday\">passed through Congress on Thursday<\/a>.<\/p>\n\n\n\n<p>While the policy is designed to stimulate economic activity, it has sparked fresh concerns over rising US debt and the long-term implications for public finances.<\/p>\n\n\n\n<p>Markets viewed the bill as both inflationary and destabilising in the longer term \u2013 factors that tend to support demand for gold as a safe-haven asset.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Jobs data solid, but rate cut expectations persist<\/strong><\/h2>\n\n\n\n<p>US non-farm payrolls rose by 147,000 in June, exceeding forecasts, while the unemployment rate unexpectedly dipped to 4.1%.<\/p>\n\n\n\n<p>Ordinarily, such robust labour market performance would weigh on gold, as it strengthens the US dollar and drives Treasury yields higher.<\/p>\n\n\n\n<p>However, investors appeared to interpret the data as less hawkish than expected.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">\u201cThe labor supply is declining; whenever we have that, the unemployment rate tends to trend lower,\u201d T. Rowe Price chief US economist Blerina Uruci says on June&#39;s jobs report. <a href=\"https:\/\/t.co\/zyIM1OqKW6\">pic.twitter.com\/zyIM1OqKW6<\/a><\/p>&mdash; Yahoo Finance (@YahooFinance) <a href=\"https:\/\/twitter.com\/YahooFinance\/status\/1940808114351034413?ref_src=twsrc%5Etfw\">July 3, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>Fed funds futures now reflect a 50 basis point rate cut beginning in October, suggesting markets still anticipate monetary easing.<\/p>\n\n\n\n<p>While an immediate shift in policy looks unlikely, softer data or subdued inflation could prompt the Federal Reserve to act.<\/p>\n\n\n\n<p>Historically, lower interest rates tend to benefit gold, which does not yield interest and becomes more attractive in low-rate environments.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Technical analysis: Bullish trend breaks down<\/strong><\/h2>\n\n\n\n<p>Gold (XAU\/USD) saw sharp intraday volatility, falling from a high of 3365.76 to a low of 3311.68 before settling near 3328.43.<\/p>\n\n\n\n<p>This move marked a clear breakdown of the prior bullish structure, with the price now trading below the 5, 10, and 30-period moving averages.<\/p>\n\n\n\n<p>The shallow rebound from intraday lows indicates limited bullish conviction.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"438\" src=\"https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/WhatsApp-Image-2025-07-04-at-09.07.07-1024x438.jpeg\" alt=\"\" class=\"wp-image-23314\" srcset=\"https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/WhatsApp-Image-2025-07-04-at-09.07.07-1024x438.jpeg 1024w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/WhatsApp-Image-2025-07-04-at-09.07.07-300x128.jpeg 300w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/WhatsApp-Image-2025-07-04-at-09.07.07-768x329.jpeg 768w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/WhatsApp-Image-2025-07-04-at-09.07.07-500x214.jpeg 500w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/WhatsApp-Image-2025-07-04-at-09.07.07-400x171.jpeg 400w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/WhatsApp-Image-2025-07-04-at-09.07.07-350x150.jpeg 350w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/WhatsApp-Image-2025-07-04-at-09.07.07-200x86.jpeg 200w, https:\/\/www.vtmarkets.com\/en-eu\/wp-content\/uploads\/sites\/33\/2025\/07\/WhatsApp-Image-2025-07-04-at-09.07.07.jpeg 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Picture: Gold retreats below 3355 as Fed hawks weigh, as seen on the <a href=\"https:\/\/apps.apple.com\/au\/app\/vt-markets-online-trading\/id1372647263?mt=8\" target=\"_blank\" rel=\"noopener\" title=\"VT Markets app\">VT Markets app<\/a>.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Meanwhile, the MACD histogram remains negative, although its lines are beginning to converge \u2013 potentially signalling a base formation, though no firm reversal has been confirmed.<\/p>\n\n\n\n<p>Resistance is now seen at 3355.96, the site of a prior breakout, while immediate support is near 3311. A break below that level could open the path toward 3300.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Geopolitical risks and tariffs continue to underpin gold demand<\/strong><\/h2>\n\n\n\n<p>Further safe-haven demand was fuelled by renewed trade tensions after Trump announced that tariff enforcement letters would start going out on Friday.<\/p>\n\n\n\n<p>This move suggests a shift away from negotiation and towards implementation, rekindling fears of a global trade slowdown.<\/p>\n\n\n\n<p>In parallel, Trump\u2019s recent call with Russian President Vladimir Putin reportedly failed to produce any progress on the Ukraine issue, keeping geopolitical tensions elevated.<\/p>\n\n\n\n<p>Russia\u2019s statement that it would continue to address the \u201croot causes\u201d implies a prolonged period of uncertainty.<\/p>\n\n\n\n<p>Against this backdrop, gold remains an attractive hedge against both political instability and economic risk.<\/p>\n\n\n\n<p>Unless there is a significant rise in Treasury yields or a more hawkish shift from the Fed, safe-haven flows are likely to continue into the coming week.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Click <a href=\"https:\/\/www.vtmarkets.net\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\" target=\"_blank\" rel=\"noopener\" title=\"here\">here<\/a> to open account and start trading.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold held steady this week as markets weighed strong US job data against rising concerns over fiscal policy and global tensions. While economic strength can pressure gold, safe-haven demand remains supported by uncertainty. Gold holds on uncertainty Gold prices hovered close to $3,328 per ounce on Friday, largely unchanged from the previous day, as investors <a href=\"https:\/\/www.vtmarkets.com\/en-eu\/analysis\/gold-steady-as-fiscal-concerns-boost-demand\/\" class=\"read-more\">Continue Reading<\/a><\/p>\n","protected":false},"author":5,"featured_media":23315,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37],"tags":[],"class_list":["post-23312","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/posts\/23312","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/comments?post=23312"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/posts\/23312\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/media\/23315"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/media?parent=23312"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/categories?post=23312"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-eu\/wp-json\/wp\/v2\/tags?post=23312"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}