Trump’s sweeping tax-cut bill passes US House, on way to Senate
Gold can maintain foothold above the $3,000 level – analyst
Dollar has lost more than 1% so far this week
May 22 – Gold prices were poised on Friday for their best weekly gain in more than a month, as a softer U.S. dollar and mounting concerns over the deteriorating fiscal outlook for the world’s biggest economy boosted bullion’s safe-haven appeal.
Spot gold was up 0.3% at $3,303.09 an ounce, as of 0404 GMT. Bullion has risen 3% so far this week and is on track for its best weekly performance since April 7.
U.S. gold futures added 0.2% to $3,302.80.
The dollar has lost more than 1% so far this week and is set for its worst weekly performance 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.’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 remain swirling around financial markets.”
The Republican-controlled U.S. House of Representatives passed a sweeping tax and spending bill on Thursday, embedding much of President Donald Trump’s policy agenda and adding trillions of dollars more to the national debt.
What Trump dubbed a “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. Investor sentiment was already fragile after Moody’s downgraded the U.S. triple-A credit rating last week.
Gold is used as a safe store of value during political and financial uncertainty.
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.
Spot silver edged 0.2% higher to $33.13 an ounce, platinum firmed 0.4% to $1,085.89 and palladium lost 0.5% to $1,009.69.
This article was generated from an automated news agency feed without modifications to text.
