Gold Prices Hit One-Week High as Dollar Weakens and Fiscal Concerns Grow

Gold prices surged to a one-week high on Tuesday as the U.S. dollar weakened and investors reacted to increasing concerns over the nation’s fiscal trajectory. The price of spot gold reached $2,388 per ounce — the highest level in seven days — as financial markets adjusted to a combination of macroeconomic pressure and geopolitical uncertainty.

The U.S. dollar index slipped amid renewed speculation about rising federal deficits and the long-term effects of new tax and spending proposals introduced by the Trump administration. Analysts note that a weaker dollar typically makes gold more attractive to overseas buyers, increasing demand for the metal.

Analysts indicate that the weakening dollar and persistent fiscal uncertainties are contributing to increased demand for gold as a safe-haven asset. With ongoing geopolitical instability and global financial volatility, investors continue to seek refuge in precious metals.

Recent projections by the Congressional Budget Office warned that the U.S. deficit could grow substantially in the next decade, heightening market sensitivity. This outlook has added pressure to bond yields and further fueled interest in inflation-resistant assets such as gold.

In addition to gold, silver and platinum also posted moderate gains, reflecting broader investor movement toward metals amid a cautious economic environment. Central banks in several countries have also ramped up gold reserves, reinforcing demand on the institutional level.

Market observers expect gold to remain above $2,350 in the short term, especially if concerns over U.S. fiscal policy and international tensions persist.