Daily Morning Analysis Report – Tuesday – 01/07/2025

Daily Market Report

Gold Extends Gains for Second Day: XAU/USD climbs to a three-day high near $3,332–$3,333,

supported by safe-haven demand and macroeconomic factors.

Fed Rate Cut Expectations Weigh on USD: Markets increasingly expect the Fed to cut rates by

September, dragging the US Dollar to its lowest level since February 2022.

Trump Tariff Uncertainty Fuels Safe-Haven Demand: Concerns over Donald Trump’s aggressive

trade stance ahead of the July 9 deadline prompt risk aversion and support gold prices.

Weak US Economic Data Adds Pressure: Declining May consumer spending (PCE data) and soft

economic signals support expectations of policy easing, further weakening USD.

Trump Pressures Fed for Rate Cuts: Trump reportedly sent a handwritten note urging Fed Chair

Powell to lower interest rates, adding to political pressure on monetary policy.

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