Gold rose, supported by a decline in the dollar, as Senate negotiations continued over President Donald Trump's $4.5 trillion tax package.

Gold rose 0.6% on Monday, after two straight weekly declines. Republicans are trying to convince opponents to support the tax bill for final passage, amid concerns that it will further swell the U.S. deficit.

However, the precious metal is on track to end June flat for a second straight month as tensions in the Middle East eased, while consumer sentiment and inflation expectations improved in the U.S.

The potential approval of Trump's tax bill and an eventual trade deal could cool demand for the metal as concerns about U.S. growth ease, Citigroup Inc. analysts said. Citi expects gold prices to fall below $2,700 an ounce in the second half of 2026, and "strongly recommends that gold producers take out insurance against a price decline from current levels."

For the year, gold is still up about a quarter and is trading about $210 below its April record, supported by demand for safe-haven assets as investors grapple with rising geopolitical and trade tensions.

Spot gold was trading at $3,292.92 an ounce at 12:30 p.m. in New York. The Bloomberg Dollar Spot Index fell 0.3%. Silver was little changed, while platinum and palladium fell. (alg)

Source: Bloomberg