Gold prices reached their highest level in two weeks today, buoyed by a weakening U.S. dollar and growing concerns about the American economic outlook.

Investors are awaiting further economic data to gain clarity on the direction of interest rates.

As of 02:28 GMT, spot gold was holding steady at $3,339.99 per ounce.

Meanwhile, U.S. and London markets were closed on Monday in observance of a public holiday.

U.S. gold futures fell by 0.8% to $3,339.80. Kelvin Wong, a senior market analyst for the Asia-Pacific region, noted that the market is currently experiencing some stabilization in gold prices, as participants take a breather and await the next catalyst.

Investors are increasingly concerned about the widening U.S. budget deficit, which serves as a supportive factor for gold prices and contributes to the dollar's ongoing weakness.

The U.S. dollar index dropped by 0.3%, hovering near a month-long low against its peers, which enhances gold’s attractiveness for holders of other currencies.

Last week, the House of Representatives passed a version of President Donald Trump’s tax cut proposal, which the Congressional Budget Office estimates could add approximately $3.8 trillion to the federal government’s existing debt of $36.2 trillion over the next decade.

Additionally, Trump has backtracked on his threat to impose a 50% tariff on imports from the European Union next month, reverting to a deadline of July 9 to allow for negotiations between Washington and the EU aimed at reaching an agreement.

Investor attention this week is also focused on speeches by several policymakers from the Federal Reserve, along with the core Personal Consumption Expenditures Price Index scheduled for release on Friday, which may provide further insights into interest rate trajectories.

In related precious metals markets, silver prices rose by 0.1% to $33.38 per ounce, platinum remained unchanged at $1,084.28, while palladium experienced a decline of 0.3% to $984.25.