Gold Gleams Amid Growing Worries About Trump’s Tax Plan

Gold prices rose during Asian trading on Thursday, as investors sought safe-haven assets amid growing concerns over the U.S. government’s debt levels and weak demand for 20-year Treasury bonds. These concerns were intensified by political developments surrounding a new tax and spending bill backed by former President Donald Trump.

Price Update:

Spot gold increased by 0.2% to $3,320.37 per ounce as of 00:26 GMT. Meanwhile, U.S. gold futures climbed 0.3% to $3,322.20 per ounce, according to data from Reuters.

Political and Economic Background:

U.S. House Speaker Mike Johnson stated that he is close to bringing President Trump’s proposed tax and spending legislation to a vote, suggesting a potential resolution of internal Republican opposition. However, economic analysts warn that this bill, if passed, could add between $3 trillion and $5 trillion to the national debt.

Investor anxiety grew further after the U.S. Treasury saw weak demand for a $16 billion sale of 20-year bonds on Wednesday. This tepid interest underscores a broader decline in appetite for U.S. assets, reflecting market skepticism over future fiscal stability.

Performance of Other Precious Metals:

Silver rose 0.3% to $33.47 per ounce.Platinum dropped 0.4% to $1,072.70 per ounce.Palladium fell 1.1% to $1,026.58 per ounce.

The uptick in gold prices underscores the metal’s enduring role as a safe haven during times of economic and geopolitical uncertainty. As developments in Washington unfold and investors weigh the potential impact of expansive fiscal policies, gold may continue to draw interest as a hedge against volatility and rising debt risks.