WASHINGTON (dpa-AFX) - Gold prices were mixed on Thursday, after having reached a two-week high earlier amid U.S. fiscal uncertainty, a weakening dollar and soft demand for 20-year Treasury bonds.
Spot gold was up 0.1 percent at $3,319.19 per ounce in European trade, extending gains for a fourth session. U.S. gold futures were down 0.2 percent at $3,307.44.
The dollar was pinned lower on fiscal worries, with economists warning that a new budget proposal could swell the country's federal deficit.
U.S. President Donald Trump is championing an extension of his 2017 tax cuts, which analysts warn could add trillions to the federal governments already massive $36.2 trillion debt pile.
The plan has sparked fears of an even wider deficit, especially as interest payments continue to soar.
Former Treasury Secretary Steven Mnuchin said during a panel discussion at the Qatar Economic Forum that he's more alarmed by the growing budget deficit than the trade deficit, and urged Washington to prioritize fiscal repair.
30-year U.S. Treasury yields topped 5.09 percent on deficit fears tied to stalled U.S. budget bill negotiations.
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