Gold prices rise due to weaker US dollar, euro and pound stay strong

From Investing.com: 2025-07-01 05:07:00

Gold prices rose by 0.88% on Monday due to a weaker US dollar. Analysts expect a gold market deficit in Q3 2025 before easing, driven by a decline in investment demand. XAU/USD continued to rise, with market focus shifting to Federal Reserve Chair Jerome Powell’s upcoming testimony for further clarity on Fed policy.

The euro climbed to a four-year high against the US dollar, benefiting from the US dollar’s weakness and investor confidence in the eurozone’s fiscal outlook. Market sentiment has shifted in favour of the euro following a major EU spending bill announcement. Trade developments and US spending bills are closely monitored, impacting the euro’s outlook.

The British pound remained steady near its highest level since October 2021 following the implementation of a new U.K.–US trade deal. The agreement has reduced tariffs on British car exports and aerospace goods, offering a boost to the U.K.’s export outlook. The Bank of England’s cautious stance on interest rates and US fiscal policy uncertainty have supported the pound amidst economic resilience and inflation concerns.



Read more at Investing.com: Gold Price Gains as US Dollar Weakens Ahead of Powell Testimony