Gold prices are poised to record their best weekly performance since early April, driven by a weakening U.S. dollar and rising anxiety over the state of America’s public finances, which has sparked renewed demand for safe-haven assets.
As of 00:14 GMT on Friday, spot gold rose 0.2% to $3,299.79 per ounce, marking a weekly gain of approximately 3%. Similarly, U.S. gold futures climbed 0.2% to $3,299.60 per ounce, reflecting continued investor interest in the precious metal amid growing economic and geopolitical uncertainty, according to news agencies.
The U.S. dollar has fallen more than 1% this week, on pace for its worst weekly showing since April 7. This decline has made gold more affordable for investors holding other currencies, contributing to the metal’s upward momentum.
Fueling market caution, the Republican-led U.S. House of Representatives passed a sweeping tax and spending package on Thursday that enacts much of former President Donald Trump’s economic agenda. However, the bill also adds trillions of dollars to the national debt, heightening concerns about the country’s long-term fiscal health. The legislation now moves to the Senate, where Republicans maintain a slim majority of 53-47.
Gold, long regarded as a hedge during times of political and financial instability, is drawing increased interest as these uncertainties mount.
Adding to the geopolitical tension, Iranian Foreign Minister Abbas Araqchi issued a stern warning that the United States would bear legal responsibility for any Israeli strike on Iranian nuclear facilities. This follows a CNN report indicating that Israel may be preparing for potential military action, further intensifying global market unease.
In the broader precious metals market:
- Spot silver held steady at $33.07 per ounce
- Platinum edged up 0.1% to $1,082.47
- Palladium slipped 0.3% to $1,012.00
Meanwhile, the price of a barrel of Kuwaiti oil fell by $2.35 to $64.05, signaling continued volatility in energy markets as global demand and geopolitical risks remain in flux.
Investors are closely watching these developments, with gold emerging once again as a preferred refuge in a complex and uncertain global landscape.
