💵 Gold Holds Firm Above $3,400 as Dollar's Slide Continues
Gold prices remain near record highs around $3,400, driven by a persistently weakening U.S. dollar. Despite strength in equities, the softening dollar has maintained gold's appeal. Analysts expect the trend to continue, especially as economic and policy events further pressure the dollar.
📈 Gold Hits Five-Week High Amid Trade Uncertainty
Gold climbed 1.3%, reaching its highest level in five weeks, as uncertainty grows over U.S. trade deadlines and potential tariff increases. Dollar weakness and declining U.S. bond yields boosted gold’s safe-haven status, with traders also anticipating a potential Federal Reserve rate cut in September.
📉 Why Tariff News Isn’t Moving Stocks Like Before
Markets have grown less sensitive to tariff announcements. Despite ongoing tariff threats from President Trump, stocks — including those most affected — show minimal reaction and continue to set new highs. Goldman Sachs strategist David Kostin notes that investors expect tariffs to stabilize at lower levels, and economic data suggests less tariff impact than initially feared.
💳 CBO: Trump Tax Law Adds $3.4 Trillion to U.S. Deficit
The Congressional Budget Office reports President Trump’s new tax and spending law will increase federal deficits by $3.4 trillion over the next decade. Signed on July 4, the law extends tax breaks, introduces deductions for tips and auto loans, and reduces Medicaid and food assistance funding.
🥇 Gold Becomes "Standout Asset" as Investors Double Allocations
A new HSBC survey shows wealthy investors doubling their allocation to alternative assets, with gold emerging as the standout. Gold’s share jumped dramatically from 5% to 11% — the largest increase among all asset classes. Physical gold remains particularly attractive as a safe haven, with 41% of respondents planning to own it and 28% interested in digital gold. Gen Z and Millennials are leading this shift, significantly reducing their cash holdings from 31% to 17%.
