Treasury Secretary Advocates for Aggressive Fed Rate Cut Amid Revised Jobs Data

The U.S. government’s budget deficit surged nearly 20% to $291 billion in July 2025, despite collecting $21 billion more in tariff revenue from President Trump’s trade policies. While customs duties jumped from $8 billion to $28 billion compared to last year, government spending outpaced revenue gains. Total outlays hit a record $630 billion for the month, growing 10% year-over-year, while receipts only increased 2% to $338 billion. For the fiscal year through July, the deficit stands at $1.629 trillion, up 7% from the previous year.

Gold prices rose on Wednesday, climbing 0.6% to $3,363.61 per ounce, as investors increasingly bet on a Federal Reserve interest rate cut in September. The rally was driven by mild inflation data and a weakening dollar, which made gold more affordable for international buyers. Markets are now pricing in a 96% chance of a rate cut next month, with gold benefiting as a traditional safe-haven asset that performs well in low-interest environments.

Gold extended its gains following the release of US inflation data that aligned with market expectations, reinforcing beliefs that the Federal Reserve will reduce interest rates in their upcoming meeting. While underlying inflation rose to its strongest level since the beginning of the year, subdued goods prices helped ease concerns about tariff-related pressures on the economy. The precious metal, which doesn’t pay interest and typically performs well in lower rate environments, has climbed approximately 28% year-to-date. Market participants remain watchful for clarity on whether gold bar imports will face tariffs, after confusion last week when the US Customs and Border

Switzerland’s precious metals lobby is urging U.S. President Donald Trump to make a formal commitment that gold will remain tariff-free. While Trump’s recent statement against imposing gold tariffs boosted market confidence, the Swiss association ASFCMP says only a binding decision will provide the certainty needed for global trade stability.