Gold Price Nears Two-Week High, Supported by US Fiscal Concerns and Geopolitical Risks

Gold Price Nears Two-Week High, Supported by US Fiscal Concerns and Geopolitical Risks

Gold prices (XAU/USD) continued their strong intraday advance on Friday, moving closer to a two-week high reached the previous day. The precious metal traded around $1,933 during the early European morning session, on track to post its best weekly gain in over a month.

The upward momentum is driven by investor demand for safe-haven assets amid growing concerns about the US fiscal situation. The recent passage of President Donald Trump’s budget bill has intensified worries about the expanding US budget deficit, supporting the appeal of gold as a store of value.

Additional factors boosting gold include escalating US-China trade tensions and rising geopolitical risks, both of which contribute to the metal’s haven status. Meanwhile, the US Dollar (USD) has shown limited strength despite some positive US economic data, as markets weigh the possibility of further Federal Reserve interest rate cuts. These expectations of looser monetary policy tend to benefit gold, which does not yield interest.

Overall, gold remains well-supported by a blend of macroeconomic uncertainties and safe-haven demand, suggesting that prices could continue to rise in the near term.