Gold Rises 1%, Set for Best Week in Six Amid Weaker Dollar and U.S. Fiscal Concerns
Gold prices rose 1% on Friday, putting the precious metal on course for its strongest weekly performance in six weeks, as a weakening U.S. dollar and growing concerns over the country’s fiscal outlook drove investors towards safe-haven assets.
Spot gold was trading at $3,327.89 an ounce as of 0919 GMT, up 1% on the day and 4% higher for the week—its best weekly gain since April 7. U.S. gold futures also advanced 1%, reaching $3,328.
According to UBS analyst Giovanni Staunovo, gold prices are being buoyed by growing investor unease over the U.S. fiscal outlook, sparked by President Donald Trump’s tax legislation.
“The tax bill is raising concerns about the fiscal health of the U.S., which is weighing on the dollar and prompting some investors to shift from Treasuries into gold,” Staunovo explained. “The recent surge in 30-year Treasury yields also signals caution around the fiscal situation, and in this environment, safe-haven assets like gold are clearly benefitting.”
Gold Eyes Key Resistance Level as Precious Metals Trade Mixed
On the technical side, spot gold is poised to retest resistance at $3,335 per ounce, with a potential breakout paving the way for a move up to $3,366, according to Reuters technical analyst Wang Tao.
Elsewhere in the precious metals market, spot silver inched up 0.2% to $33.13 an ounce. Platinum held steady at $1,081.43, while palladium slipped 0.5% to $1,009.89.
