Doha: Gold prices rose on Wednesday to their highest levels in a week as the dollar weakened and investors sought safety amid US fiscal uncertainty, with Congress debating a sweeping tax bill. Spot gold was up 0.2% at $3,293.98 an ounce, after hitting its highest level since May 12 earlier in the session. US gold futures gained 0.3% to $3,295.80.
According to Qatar News Agency, the dollar retreated to its lowest level since May 8, making greenback-priced gold cheaper for overseas currency holders. This currency movement has contributed to the increase in demand for gold, as investors look to hedge against fiscal instability in the US.
In contrast to gold, other metals displayed varied trends in the market. Spot silver fell 0.2% to $32.99 an ounce, while platinum experienced a decline of 0.3% to $1,050.25. On the other hand, palladium recorded a gain of 0.5%, reaching $1,017.93, marking its highest level since February 4, 2025.
The ongoing discussions in Congress over the tax bill have added a layer of uncertainty to the market, prompting investors to seek the relative security of gold. The weakening dollar serves as a catalyst for this shift, highlighting the interconnectedness of currency valuation and commodity markets.