Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
What’s happening: Gold prices settled higher on Tuesday following the clearance of the US tax-cut bill.
What happened: The Republican-controlled Senate on Tuesday passed US President Donald Trump’s tax and spending bill.
The latest economic reports and tariff related news from the US also supported gold prices.
Why it matters: The policy, dubbed as “One Big Beautiful Bill,” includes huge tax cuts, new tax breaks, the rolling back of billions of dollars in green energy incentives, reductions to Medicaid and more stringent immigration enforcement.
The bill was passed by the narrowest margin, with the Senate voting 51-50 in favour. Concern around the bill crushing the green industry, hurting vulnerable people, and massively increasing US deficit had investors fleeing to gold.
Investors continued monitoring the latest trade developments between the US and some of its biggest partners ahead of the expiration of President Donald Trump’s 90-day respite on reciprocal tariffs.
US Treasury Secretary Scott Bessent warned that higher tariffs could be imposed on some nations despite ongoing talks, following the July 9 deadline, fuelling investor fear and lending support to the safe-haven gold.
US Federal Reserve Chairman Jerome Powell maintained a cautious tone on interest rate cuts, signalling inflation risks due to recent tariffs. Investors currently expect two rate cuts this year, beginning in September. Speculations of lower interest rates increase the appeal for non-yielding gold.
Data released on Tuesday from the US showed the Dallas Fed’s general business activity index rose by 5.7 points in June, but remained in the negative, at a reading of –4.4.
Although the ISM manufacturing PMI rose to 49 in June, from 48.5 in the previous month, it marked the fourth consecutive month of contraction in the manufacturing sector.
US gold futures gained 1.3% to close at $3,349.8 an ounce on Tuesday.
In other metals trading, silver settled higher at $36.397 an ounce, copper rose to $5.0995, platinum closed at $1,358.7 and palladium settled at $1,112.90.
What to watch: Investors will continue monitoring the implementation of the US tax and spending bill. Markets will also monitor trade talks and the geopolitical environment.
Context: The CAD/USD forex pair slipped this morning as investors monitored tariff-related news.
Details: Investors continued assessing the latest developments around deals being struck between the US and some of its biggest partners ahead of the July 9 deadline. Canada recently scrapped its proposed digital services tax in a bid to ease trade tensions with the US.
Strength in the US dollar exerted pressure on the CAD/USD forex pair. The US dollar index, which measures the greenback’s performance versus a basket of major peers, rose around 0.1% to 96.71 this morning.
The Canadian dollar declined despite a rise in the price of crude oil, one of its major exports. WTI crude oil prices gained around 0.1% to $65.50 a barrel this morning.
The CAD/USD pair slipped to 1.3652 this morning. The S&P/TSX Composite Index had risen by 0.62% to close at 26,857.11 on Tuesday.
What to watch: Investors await the release of economic data on S&P Global manufacturing PMI (1730 UAE Time) from Canada today. The S&P Global Canada manufacturing PMI, which rose to 46.1 in May from 45.3 in the previous month, is expected to rise further to 47.2 in June.
Other Markets: European indices closed mostly lower on Tuesday, with the DAX 40, CAC 40 and STOXX Europe 600 Index down by 0.99%, 0.04% and 0.21%, respectively, and the FTSE 100 up by 0.28%.
Russia’s President Vladimir Putin and France’s President Emmanuel Macron held the first phone call in around three years to discuss the ongoing wars in Ukraine and the Middle East. The news sent the safe-haven US dollar index lower in forex trading this morning.
Australia’s retail sales grew 0.2% in May, following a flat reading in the previous month. However, the latest reading missing market estimates of 0.4% exerted pressure on the AUD/USD forex pair.
South Korea’s consumer prices rose 2.2% year-over-year in June, following a 1.9% rise in the previous month. This coming in above market estimates of 2.1% sent the KRW/USD pair lower in forex trading this morning.
Mexico’s S&P Global manufacturing PMI declined to 46.3 in June, from 46.7 in the previous month, which exerted pressure on the MXN/USD forex pair.
Colombia’s Davivienda manufacturing PMI dipped to 51 in June, from 52.6 in May, which sent the COP/USD pair lower in forex trading this morning.
Brazil’s IPC-Fipe inflation (1200 UAE Time), Italy’s unemployment rate (1200 UAE Time), South Africa’s inflation expectations (1230 UAE Time), Eurozone’s unemployment rate (1300 UAE Time), 12-month Bill auction (1410 UAE Time), 3-month Bill auction (1410 UAE Time) and 6-month Bill auction (1410 UAE Time), UK’s Treasury Gilt 2028 auction (1300 UAE Time), Germany’s 10-year Bund auction (1330 UAE Time), US MBA mortgage applications (1500 UAE Time), Challenger job cuts (1530 UAE Time), ADP employment change (1615 UAE Time), EIA crude oil stocks change (1830 UAE Time), EIA gasoline stocks change (1830 UAE Time), EIA distillate stocks change (1830 UAE Time) and 17-week Bill auction (1930 UAE Time), Brazil’s industrial production (1600 UAE Time), Singapore’s SIPMM manufacturing PMI (1700 UAE Time), Canada’s 10-year Bond auction (2000 UAE Time), as well as Russia’s unemployment rate (2000 UAE Time), business confidence (2000 UAE Time), corporate profits (2000 UAE Time), real wage growth (2000 UAE Time) and retail sales (2000 UAE Time).
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities LLC – S.P.C (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates under First Category: Dealing in Securities and Fifth category: Arrangement and advice (Introduction). ADSS is a Limited Liability Company – Sole Proprietorship Company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
