Gold Eyes Weekly Gain Over 3% as U.S. Dollar Weakens Amid Fiscal Concerns

Gold Eyes Weekly Gain Over 3% as U.S. Dollar Weakens Amid Fiscal Concerns

Gold is poised to report a weekly gain of more than 3%, driven by a weakening U.S. dollar and growing concerns about the United States’ fiscal and economic future. In early trading, gold futures rose 1.1% to $3,331 per ounce, while the U.S. dollar index declined 0.5% to 99.45.

Commodity analyst Barbara Lambrecht from Commerzbank Research noted that gold is strengthening again because it remains highly desirable in times of political instability. Additionally, other traditional safe-haven assets, such as the U.S. dollar, are currently under selling pressure, boosting gold’s appeal.

Investor focus this week has shifted to the U.S. fiscal outlook following the House of Representatives’ passage of President Trump’s tax-and-spending blueprint. Analysts warn that this plan could significantly expand the U.S. government’s deficit in the coming years, further fueling demand for gold as a safe haven.