Gold Prices Rise Over 1% Amid US Debt Concerns, Weekly Gains Near 4%

Gold Prices Surge Amid Growing U.S. Debt Concerns

Gold prices surged over 1% on Friday, driven by renewed worries about the increasing U.S. debt following the recent approval of President Trump’s spending bill in the House of Representatives. The bill, which now moves to the Senate for further consideration, is expected to add significantly to the U.S. fiscal deficit, intensifying market concerns about the country’s debt sustainability.

Investors are closely watching the 30-year U.S. Treasury yields, which have climbed to their highest levels since late 2023, reaching around 5.15%. The rise in yields reflects increased risk premiums demanded by investors amid the expanding debt burden and recent credit rating downgrades by Moody’s. This environment has boosted gold’s status as a safe-haven asset, with prices on track to post weekly gains of nearly 4%, fully recovering from last week’s decline.

The market remains cautious as uncertainty around U.S. fiscal policy and its impact on the economy continues to support demand for gold as a protective hedge.