Gold price moves closer to two-week high touched on Thursday; seems poised to appreciate further
Gold price (XAU/USD) builds on its steady intraday ascent and touches a fresh daily peak, around the $3,333 area during the early part of the European session on Friday. The commodity has now moved well within striking distance of a two-week high touched on Thursday and remains on track to register its best weekly gain in more than a month amid a supportive fundamental backdrop.
Investors remain on edge amid worries about the worsening US fiscal situation. Adding to this, renewed US-China tensions and geopolitical risk underpin the safe-haven Gold price. Meanwhile, the US Dollar (USD) struggles to capitalize on Thursday's upbeat US data-inspired gains amid bets for more rate cuts by the Federal Reserve (Fed), which further benefits the non-yielding yellow metal.
The Republican-controlled US House of Representatives on Thursday narrowly passed President Donald Trump's sweeping tax and spending bill. Trump's dubbed “Big, Beautiful Bill”, which will add about $3.8 trillion to the federal government's debt over the next decade, now heads to the Senate for approval.
This comes on top of escalating US-China trade tensions, which have been fueling worries about the potential economic impact. Adding to this, the prospects for further policy easing by the Federal Reserve continue to undermine the US Dollar and assist the Gold price to stall the previous day's retracement slide.
Source: Fxstreet
