? Summary:
Gold prices remain elevated on Tuesday as markets digest Jerome Powell’s cautious policy stance and renewed fiscal uncertainty from Trump’s proposed tax reforms. Better-than-expected U.S. data briefly supports the Dollar, but bullion remains firm.

Gold prices (XAU/USD) are holding steady around the $3,350 mark, gaining ground amid rising U.S. fiscal concerns and growing speculation over potential rate cuts from the Federal Reserve. The rally follows comments by Fed Chair Jerome Powell at the European Central Bank (ECB) Forum in Sintra, Portugal, where he reiterated a data-dependent approach to monetary policy.

Despite a stronger-than-expected showing from the U.S. ISM Manufacturing and JOLTs reports, which momentarily buoyed the greenback, the Dollar remains under pressure due to broader fiscal anxieties. At the center of this is former President Donald Trump’s proposed "Big Beautiful Tax Bill," which stokes concerns about the long-term stability of U.S. finances and supports gold’s safe-haven appeal.

During the forum, Chair Powell noted:

“As long as the U.S. economy is in solid shape, we think the prudent thing to do is wait, learn more, and assess the effects.”

He emphasized that policy decisions will be made "meeting by meeting", and no outcome—rate cut or hold—is off the table.

This stance, while not outright dovish, leaves the door open to a potential September rate cut, especially if economic indicators soften further. Still, Powell’s commitment to flexibility suggests the Fed is in no rush to act, which has kept XAU/USD gains modest but resilient.

In short, bullion remains supported by a blend of political pressure on the Fed, fiscal risks, and cautious optimism in economic data—creating a complex backdrop where gold continues to shine.