Gold Prices Rise Supported by Dollar Decline and Trump's Pressure to Cut Interest Rates

Gold prices witnessed a significant increase during Tuesday's trading on July 1, supported by the decline in the value of the US dollar, while investors await the release of US labor market data later this week, which may impact the Federal Reserve's monetary policy directions.

According to the data, the price of gold in spot trading rose by 0.5% to reach $3322.26 per ounce, while US gold futures jumped by 0.8% to $3334.70.

The decline in the dollar index by 0.2%, hitting its lowest levels in three years, contributed to enhancing the attractiveness of the yellow metal for foreign currency holders.

In a related context, US President Donald Trump renewed his calls for the Federal Reserve to ease its monetary policies, as he sent a memorandum to Fed Chair Jerome Powell on Monday, including a list of interest rates at several global central banks, accompanied by handwritten comments stating:"US interest rates should be lowered to align with rates in countries like Japan (0.5%) and Denmark (1.75%)".

This move comes as markets focus on the US job report for June, which may provide crucial indications about the possibility of the Fed adjusting interest rates during its meeting scheduled for this month.

In addition to gold, other precious metals recorded slight increases, with silver reaching $36.13 per ounce in spot trading (+0.1%), platinum rising to $1362.35 (+0.7%), and palladium jumping by 1.2% to $1110.03.