The apprehension about the fiscal situation in the US after President Donald Trump’s sweeping tax-cut bill passed Congress and the lingering uncertainty over the approaching July 9 deadline for the tariff issue has boosted safe-haven demand, said Ricardo Evangelista, senior analyst at brokerage firm ActivTrades.
Trump announced that Washington will start sending letters to countries on Friday, marking a shift from earlier plans for individual trade deals. On April 2, he announced reciprocal tariffs of 10 per cent-50 per cent, but later reduced most to 10 per cent until July 9 to allow for negotiations.
Meanwhile, Trump’s tax-cut legislation cleared its final hurdle in Congress on Thursday, making his 2017 cuts permanent, funding his immigration crackdown and adding new tax breaks promised during Trump’s 2024 campaign.
Data showed U.S. job growth was unexpectedly solid in June, but nearly half of the increase in nonfarm payrolls came from the government sector, with private industry gains being the smallest in eight months as businesses battled rising economic headwinds.
The latest U.S. payroll data supports the case of a slowdown of the economy, but no standstill, slowing the pressure on the Fed to cut interest rates anytime soon, said UBS commodity analyst Giovanni Staunovo. That means gold will continue to buyers go to choice.
FAQs
Q1. Who is President of USA?
A1. President of USA is Donald Trump.
Q2. When will Tariff deadline end?
A2. The Tariff deadline will end on July 9.
