Online Reporter
Gold was 0,7 percent higher at US$3 339.65 an ounce as of 11:45am in Singapore
Gold strengthened for a fourth day, as investors pushed back against US President Donald Trump’s tax-cut plan and growing fiscal deficit by driving long-range US Treasury yields to near a two-decade high.
Bullion rose as much as 0,9 percent to about US$3 345 an ounce.
Haven appetite has been bolstered amid the risk-off mood for stocks, which has also sparked declines in the US dollar.
The precious metal, which hit an all-time high last month and has gained more than a quarter this year, is up almost 4 percent so far this week.
The renewed favour for gold — after its biggest weekly slump since November — shows a shift in investor focus from immediate tariff impacts to long-term, structural concerns about the US economy.
On Wednesday, a lackluster US$16 billion auction of 20-year bonds highlighted fears Trump’s tax cuts will add trillions of dollars to already bulging budget deficits at a time when appetite is waning for US assets across the globe.
That’s prompted investors to seek refuge in gold and other traditional havens, such as yen and Swiss franc. Meanwhile, the weaker greenback is also supporting the precious metal by making it more affordable for investors using other currencies.
Gold was 0,7 percent higher at US$3 339.65 an ounce as of 11:45 a.m. in Singapore. The Bloomberg Dollar Spot Index slipped 0,1 percent. Silver rose, while platinum and palladium were flat. — Bloomberg.
