Gold prices surge again amid concerns over US tax policy — Reuters

The weekly rise in gold prices may be the strongest in the past 1–1.5 months, Reuters reports. The rebound is driven by concerns over US fiscal policies. Donald Trump is actively promoting a fiscal-relief bill that would extend current tax breaks and introduce new ones. Market participants are worried that the problem of government debt, which is already urgent, will worsen. As a result, investor demand for safe-haven assets like gold is rising, the agency notes.

Since the beginning of the week, the yellow metal's price has gained about 3%, climbing above $3,300 per ounce. Meanwhile, the American currency has lost more than 1% over the same period. According to Tim Waterer of KCM Trade, the bullion price will not fall below $3,000 as long as Donald Trump advances his tariff and tax policies. The president's initiatives threaten to inflate the US national debt to unprecedented levels.

Investor concern on this matter is already reflected in weak demand for the country's debt securities, as well as in the downgrade of the US credit rating by several major agencies. The uncertainty surrounding the American policy is drawing traders' attention to gold.