Gold heads for biggest weekly jump in 1-1/2 months on US fiscal worries
Shafaq News/ Gold prices rose on Friday and were poised for their biggest weekly gain in more than a month, as a softer U.S. dollar and concerns over the country's fiscal outlook boosted bullion's safe-haven appeal.
Spot gold was up 1.1% at $3,329.69 an ounce as of 0654 GMT. Bullion has risen 4% this week, its highest since April 7.
U.S. gold futures added 1.1% to $3,329.80.
The dollar has lost more than 1% this week and is set for its biggest weekly drop since April 7, making greenback-priced gold cheaper for holders of other currencies.
"This week, trade optimism has somewhat given way to worries about the U.S. fiscal situation, and the resulting hesitancy towards U.S. assets has put gold back in the frame with investors," said Tim Waterer, chief market analyst, KCM Trade.
"Gold can likely maintain its foothold above the $3,000 level while tariff, U.S. debt and geopolitical (tension) remain swirling around financial markets."
The Republican-controlled U.S. House of Representatives on Thursday passed a sweeping tax and spending bill that would enact much of President Donald Trump's policy agenda and saddle the country with trillions of dollars more in debt.
Trump's so-called "big, beautiful bill", is now headed to the Senate, which Republicans control by a 53-47 margin.
On Wednesday, the U.S. Treasury Department saw soft demand for a $16 billion sale of 20-year bonds as investors, already rattled by Moody's U.S. credit rating downgrade, fretted about the country's increasing debt burden.
Meanwhile, Iran's Foreign Minister Abbas Araqchi warned that the U.S. would bear legal responsibility for any Israeli attack on Iranian nuclear facilities, following a CNN report that Israel is preparing strikes on Iran.
Gold is used as a safe store of value during political and financial uncertainty.
Spot silver edged 0.3% higher to $33.16 an ounce, platinum firmed 0.9% to $1,091.43 and palladium lost 0.1% to $1,014.00.
(Reuters)
