Spot gold rose 0.1% to $3,329.67 per ounce, as of 0221 GMT. Bullion is up 1.7% this week.
U.S. gold futures inched down 0.1% at $3,339.30.
Trump’s tax-cut legislation cleared its final hurdle in the U.S. Congress on Thursday, which will fund his immigration crackdown, make his 2017 tax cuts permanent and deliver new tax breaks that he promised during his 2024 campaign.
Through this bill “we’re not making any progress on getting our fiscal house in order here in the U.S., so in longer run, it should be bearish for the dollar and bullish for gold,” Marex analyst Edward Meir said.
The nonpartisan Congressional Budget Office estimates the legislation would add $3.4 trillion over a decade to the nation’s $36.2 trillion debt.
Meanwhile, the labor market data on Thursday showed U.S. firms added a more-than-expected 147,000 jobs in June and the unemployment rate unexpectedly fell to 4.1%, bolstering the case for the Federal Reserve to hold interest rates steady.
Trump announced that letters specifying tariff rates on imports would begin being sent out Friday, signaling a shift from earlier pledges to negotiate individual trade deals.
“If Trump is very insistent on July 9 being a drop-dead date and he imposes these tariffs again, the dollar will certainly weaken and we could see gold moving higher,” Meir said.
On April 2, Trump announced reciprocal tariffs of 10%-50%, later reducing most rates to 10% until July 9 to allow for negotiations.
Non-yielding bullion, considered a safe-haven asset during geopolitical and economic uncertainties, tends to perform well in a low-interest-rate environment.
Spot silver fell 0.5% to $36.66 per ounce, platinum rose 0.7% to $1,376.67 and palladium fell 0.6% to $1,130.60.