Gold Set for Weekly Gain as U.S. Woes Boost Appeal
Gold prices rose 1% on Friday and were on track for their best week in six, boosted by a weaker dollar and as worries over the United States’ worsening fiscal health sent investors towards safe-haven bullion.
Spot gold was up 1% at $3,327.89 U.S. an ounce. Bullion has risen 4% this week, its highest since April 7. U.S. gold futures gained 1% to $3,328.
President Donald Trump’s tax bill is supporting gold as there are concerns that this is negative for the fiscal situation of the dollar and some investors are diversifying out of treasury into gold.
The dollar slipped 0.5% and was heading for its biggest weekly drop since April 7, making greenback-priced gold cheaper for holders of other currencies.
The Republican-controlled U.S. House of Representatives on Thursday passed a sweeping tax and spending bill that would enact much of Trump’s policy agenda and saddle the country with trillions of dollars more in debt.
Recent concerns about the U.S. deficit has weighed on risk appetite among investors this week, lifting demand for assets such as gold. Gold is used as a safe store of value during political and financial uncertainty.
On the technical front, Spot gold is expected to retest a resistance of $3,335 per ounce, a break above which could lead to a gain to $3,366.
