Gold prices are on track to record their strongest weekly performance in over a month as United States President Donald Trump's tax bill narrowly passes through the Senate and a crypto bill for ‘stablecoin’ regulation makes progress.
Spot gold rose about 3% this week, reaching ~$3,303/oz, buoyed by a declining U.S. dollar and increasing concerns over America's fiscal stability.
To boot, a recent Treasury bond auction experienced weak demand following a Moody’s credit downgrade, further impacting investor confidence.
The so-called "big, beautiful bill" cutting taxes is now advancing to the Senate, where Republicans hold a 53-47 majority.
Equity markets dropped on Wednesday, as the U.S. Treasury encountered lukewarm interest during its $16 billion auction of 20-year bonds following a recent downgrade of the U.S. credit rating by Moody’s - which just further threw a wet sock at already cautious investor sentiment.
Gold starts to look fairly attractive as a reliable haven during periods of geopolitical and financial turbulence, especially when bonds creep around the 5% mark.
In other developments, Iranian Foreign Minister Abbas Araqchi issued a warning that the U.S. would be held legally accountable for any Israeli strikes on Iran’s nuclear infrastructure.
His remarks came after a CNN report suggested Israel was gearing up for potential military action against Iran.
Precious Metals:
- Silver: increased by 0.2% to $33.13/oz
- Platinum: climbed 0.4% to $1,085.89/oz
- Palladium: declined 0.5% to $1,009.69/oz
