Spot Gold advanced to a fresh 1 1/2-week high of $3,320.42 on Wednesday on the back of a weaker US Dollar and amid US fiscal uncertainty.
The US Dollar Index was last down 0.57% to 99.442, after earlier sliding to its lowest level since May 7th (99.423).
A weaker dollar makes dollar-priced Gold more appealing to international investors holding other currencies.
“The general dollar index lost more than a full point in the last 24 hours as the Moody’s downgrade, plus skepticism about Trump’s tax bill continues to undermine the dollar,” Marex analyst Edward Meir was quoted as saying by Reuters.
Moody’s lowered US’ top sovereign credit rating from Aaa to Aa1 last week, as the agency cited concerns over the country’s rising debt.
Yesterday US President Donald Trump pressed his fellow Republicans in the Congress to back a sweeping tax-cut bill, but did not manage to convince a handful of holdouts from the party.
Rising geopolitical risks also provided support to the yellow metal. Reports emerged that Israel was planning a strike on Iranian nuclear sites, a move which would most likely lead to retaliation from the Islamic state.
Spot Gold was last up 0.92% on the day to trade at $3,320.26 per troy ounce.
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