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Gold Posts Best Weekly Gain Amid U.S. Fiscal Concerns
Gold prices surged on Friday, May 23, 2025, heading for their strongest weekly performance since early April. The rally comes as the U.S. dollar weakens and investor concerns grow over America’s public finances.
Gold Market Performance:
Spot gold rose 1.1% to $3329.69 per ounce, marking a weekly gain of about 4%.
U.S. gold futures also climbed 1.1% to $3329.80 per ounce.
This weekly performance is the best since April 7. It was fueled by a 1% drop in the U.S. dollar, which made gold more attractive for holders of other currencies.
Key Drivers:
Tim Waterer, Chief Market Analyst at KCM Trade, explained that:
“Market optimism earlier in the week gave way to renewed concerns about U.S. fiscal health, making gold a go-to asset again.”
He added that gold is likely to stay above $3000, citing ongoing pressure from global tariffs, rising U.S. debt, and geopolitical risks.
Adding to these worries, the U.S. House of Representatives—controlled by Republicans—approved a sweeping tax and spending bill aligned with former President Donald Trump’s agenda. This move could add trillions to the U.S. national debt, raising doubts about fiscal sustainability.
Other Precious Metals:
Silver rose 0.3% to $33.16 per ounce.
Platinum gained 0.9% to $1091.43.
Palladium edged down 0.1% to $1014.
Market Outlook:
With rising global uncertainties and persistent fiscal challenges in the U.S., analysts expect gold to remain a strong safe-haven asset in the near term.
