Gold posts weekly gains on Friday amid U.S. debt fears
Gold posts weekly gains on Friday amid persistent concerns over U.S. debt
Gold (XAU/USD) extended its weekly gains on Friday, trading near $3,329 and rising nearly 1% for the day, supported by renewed safe-haven demand. The U.S. House of Representatives passed President Donald Trump’s spending bill on Thursday, sending it to the Senate. However, traders remain concerned that the bill will increase U.S. debt, while tariff revenues may fall short of covering the additional spending.
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This concern is reflected in the U.S. 30-year benchmark yield, which surged to 5.15% on Thursday from 4.64% at the start of May—a one-year high close to the 5.18% level seen in December 2023. Coupled with Moody’s recent downgrade of the U.S. credit rating and the $3.8 billion increase in debt from the spending bill, investors are demanding higher yields to compensate for increased risk, pushing U.S. bond yields higher, according to the Economic Times.