(Rewrites, updates prices for Americas early-morning session)

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Gold likely to average $3000/oz in Q4 2025, says analyst

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Senate Republicans struggling to unite on Trump's tax-cut

bill

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US payrolls data due on Thursday

By Sarah Qureshi

July 1 (Reuters) - Gold prices climbed more than 1% on

Tuesday, helped by a weaker dollar and economic uncertainty

ahead of U.S. President Donald Trump's July 9 deadline for the

re-introduction of higher trade tariffs.

Spot gold rose 1.4% to $3,348.96 per ounce, as of 1003

a.m. EDT (1403 GMT), the highest level since June 24. U.S. gold

futures gained 1.6% to $3,361.30.

The U.S. dollar weakened on Tuesday as Trump's massive tax-cut

and spending bill stoked fiscal worries and combined with

concern over trade deals to weigh on sentiment.

"It's just been a function of bargain hunting, dollar

weakness (and) continued uncertainty about what's going to

happen on the 9th of July," that is moving gold, said Rhona

O'Connell, head of market analysis for EMEA & Asia at StoneX.

Gold is likely to average $3000/oz for the fourth quarter

and possibly even lower by year-end, O'Connell added.

U.S. Senate Republicans were struggling to pass Trump's sweeping

tax and spending bill early in the day, amid deep divisions

within the party over concern the legislation will add about

$3.3 trillion to the nation's debt pile.

Gold is traditionally considered a hedge during times of

political and economic uncertainty.

On the trade front, Treasury Secretary Scott Bessent on Monday

warned that countries could be notified of sharply higher

tariffs as a July 9 deadline approaches, despite good-faith

negotiations on trade deals.

Investors are also watching out for U.S. ADP employment data due

on Wednesday, and Thursday's payrolls data for cues on the

Federal Reserve's interest rate policy path.

Fed Chair Jerome Powell, addressing a forum in Portugal,

said the U.S. economy was in a pretty good position. He added

that excluding the tariffs, inflation was behaving as expected

and hoped.

Markets are currently expecting two rate cuts totaling 50

basis points this year, starting in September.

Lower rates boost gold's appeal as it yields no interest.

Spot silver was up 0.6% to $36.30 per ounce,

palladium gained 1.2% to $1,111.04, while platinum

shed 0.1% to $1,350.78.