WASHINGTON (dpa-AFX) - Gold rose to a 1 1/2-week high above $3,300 per ounce on Wednesday amid U.S. fiscal uncertainty as President Donald Trump's sweeping tax bill inches through Congress.
Spot gold climbed 0.6 percent to $3,311.17 per ounce in early European trade, while U.S. gold futures were up 0.8 percent at $3,310.89.
A weaker dollar boosted bullion's appeal as investors fretted about the U.S. fiscal and economic outlook.
The U.S. dollar hit its lowest level since May 7 amidst fiscal and tariff uncertainties.
U.S. President Donald Trump's sweeping tax and spending bill is one step closer to a full vote in the House of Representatives, with economists warning the proposal would add more than $2.5 trillion to the federal debt-currently at an all-time high of $36.8 trillion-over the next decade.
According to an interview published by the Financial Times today, International Monetary Fund First Deputy Managing Director Gita Gopinath said that U.S. fiscal deficits are too large and the country needs to tackle its 'ever-increasing' debt burden.
Federal Reserve Bank of St. Louis President Alberto Musalem has warned in remarks prepared for delivery at the Economic Club of Minnesota that the risks of getting inflation wrong are high and that the Fed's credibility could be hurt as a result.
Geopolitical concerns also remained on investors radar, with reports suggesting that Israel is preparing to strike Iranian nuclear facilities.
It is said the final decision will largely hinge on the outcome of ongoing U.S.-Iran negotiations regarding Tehran's nuclear ambitions.
Elsewhere, the EU and Britain announced new sanctions against Russia without waiting for Washington to join them after Ukraine's Volodymyr Zelensky warned Vladimir Putin is 'trying to buy time' to continue his war.
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News
