The U.S. tax reform plan raises concerns about the deficit, the dollar weakens and gold rises.

Gate News bot message, On July 2, after the U.S. Senate passed the trillion-dollar tax reform plan proposed by the President, concerns about the U.S. financial situation intensified, and gold prices continued to rise. Currently, the gold price is hovering around $3,340 per ounce, having risen 2% in the last two trading days.

This bill, which is expected to increase the deficit by $3.3 trillion over the next decade, is currently awaiting approval from the House of Representatives. If passed, it could enhance the appeal of gold as a safe-haven asset. Given the potential impacts of the president’s trade and economic policies, investors are reassessing their allocation strategies for U.S. assets.

The US dollar continues to weaken, falling to its lowest point since 2022, a factor that continues to support the rise in gold prices. Although the report released on Tuesday showed that an increase in US job vacancies led to a rise in US Treasury yields, it failed to curb the momentum of rising gold prices.

Source: Jinshi