Gold Prices Soar as US Fiscal Concerns and Weakening USD Drive Investors to Safe-Havens

World gold prices rose sharply at the end of last week's trading sessions, as investors sought safe-havens due to concerns about US fiscal burdens and a weakening USD. The spot price for gold increased by 1.99% to $4,603.30 per ounce, while December futures contracts jumped by 1.97% to $4,661.60 per ounce.

The upward momentum was driven in part by the US Treasury Department's decision to boost long-term government bond repurchases, which pulled yields and the USD down. This move increases concerns that measures to curb US borrowing costs could affect confidence in the USD and put pressure on the country's fiscal outlook.

Gold prices have been supported as investors turned to precious metals amid the risk of large debt-bearing countries having to accept higher inflation or weaker currencies to cope with fiscal pressure. Cash flow into gold ETFs also shows signs of improvement, with 18 tons added in a single session, the strongest increase since September 2025.