FX.co ★ Gold Set for Weekly Gain

Gold remained steady at approximately $3,300 per ounce on Friday, recovering from prior losses and poised for a weekly increase. Its appeal as a safe-haven asset is bolstered by ongoing concerns regarding the US fiscal outlook. The weakening of the US dollar has further enhanced gold's attractiveness by making it more affordable for international buyers. Recently, the US tax bill passed in the House and now advancing to the Senate is projected by the Congressional Budget Office to cost nearly $4 trillion, heightening anxieties about long-term fiscal vulnerability. These worries are underscored by Moody’s recent downgrading of the US credit rating due to rising deficits and increased debt servicing expenses. Additionally, gold found support earlier this week as geopolitical tensions resurfaced following reports of possible Israeli military action against Iranian nuclear sites, which has sparked fears of a broader conflict escalation in the Middle East. Concurrently, the Kremlin has indicated that there are no plans for direct peace negotiations between Russia and Ukraine at present.