- US Congress passes massive tax-cut and spending bill
- Gold up 1.9% so far this week
- Platinum heads for fifth weekly rise
July 4 (Reuters) - Gold prices rebounded on Friday and were heading for a weekly gain, helped by a retreat in the U.S. dollar and safe-haven inflows, as U.S. President Donald Trump's deadline for trade deals loomed.
Spot gold was up 0.3% to $3,336.39 per ounce, as of 1211 GMT. The precious metal is up about 1.9% this week.
U.S. gold futures gained 0.1% to $3,346.60.
The dollar index slipped 0.2% and was on track for a second week of decline, making gold less expensive for other currency holders.
"The apprehension about the fiscal situation in the U.S. (after 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%-50%, but later reduced most to 10% 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.
Elsewhere, spot silver edged 0.2% higher to $36.9 per ounce and palladium eased 0.1% to $1,135.79. Platinum rose 1.5% to $1,387.54 per ounce and was heading for its fifth straight week of gains.
Reporting by Brijesh Patel in Bengaluru, additional reporting by Ishaan Arora; Editing by Harikrishnan Nair and Vijay Kishore
Source: Reuters