Lagos — Gold edged higher, moving above USD 3,300 per ounce on Friday and was poised to end the week in positive territory, as persistent fiscal and geopolitical risks reinforced its safe-haven appeal. The precious metal has effectively erased last week’s declines, supported by growing concerns over the trajectory of US debt and spending.
Investor anxiety increased after the Congressional Budget Office estimated that President Trump’s newly passed tax bill could inflate the federal deficit. The legislation, now under Senate review, has led to concerns about long-term fiscal instability.
Geopolitical tensions continue to provide support for the bullion. Renewed tensions in Eastern Europe and the Middle East could continue to drive safe-haven asset demand.
Meanwhile, trade frictions between Washington and Brussels intensified, as US officials called on the EU to lower tariffs unilaterally. Such a move could lead to the reigniting of trade tensions, making gold a more attractive asset for investors.
*Konstantinos Chrysikos Head of Customer Relationship Management at Kudotrade
