Spot Gold extended gains to a fresh 2-week peak of $3,345.45 on Thursday, as investor concerns over US government’s growing debt continued to heighten.
The US Dollar Index was hovering above a 2-week trough, being last down 0.18% to 99.508.
A weaker dollar makes dollar-priced Gold more appealing to international investors holding other currencies.
Yesterday the US House of Representatives Rules Committee voted to advance President Trump’s sweeping tax-cut and spending bill, while a vote on the House floor is expected today.
At the same time, demand for a $16 billion sale of 20-year US Treasuries was tepid, as investors remained cautious after Moody’s lowered US’ top sovereign credit rating to Aa1. This indicated low appetite for US assets and preference towards safe-haven Gold.
Spot Gold was last up 0.34% on the day to trade at $3,326.48 per troy ounce.
“Gold seems to be resuming its longer-term uptrend after the break below $3,200 failed to hold. I’m looking for a year of the highs around $3,450-$3,500 from here,” Ilya Spivak, head of global macro at Tastylive, was quoted as saying by Reuters.
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