Spot Gold was poised to register a weekly gain, its first in three weeks, after US Congress passed the Trump administration’s tax-cut and spending bill, which brought forth fiscal concerns.
The legislation, which overcame its final hurdle in Congress on Thursday, made US President Trump’s 2017 cuts permanent, funded his immigration crackdown and added new 2024 campaign tax breaks.
Through this legislation, “we’re not making any progress on getting our fiscal house in order here in the U.S., so in the longer run, it should be bearish for the dollar and bullish for gold,” Marex analyst Edward Meir was quoted as saying by Reuters.
According to the Congressional Budget Office, the bill is estimated to add $3.4 trillion to the US national debt over a decade.
On the data front, employers in all sectors of the US economy, excluding farming, added 110,000 job positions in June, exceeding market expectations, while the unemployment rate dropped to 4.1%. The data reinforced the case for the Federal Reserve to leave interest rates on hold.
Spot Gold was last up 0.51% on the day to trade at $3,342.95 per troy ounce.
The precious metal has gained 2.10% so far this week.
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