Gold is having its strongest week since April, climbing above $3,320 as worries over US debt and a falling dollar push investors toward the safe-haven metal. The US Dollar Index has dropped about 1% this week, making gold cheaper and more attractive to buyers using other currencies.
Investors are cautious after Moody’s downgraded the US credit rating and a weak $16 billion Treasury auction signaled less confidence in government bonds. Meanwhile, the US House passed a large tax-and-spending bill expected to increase the national debt, adding to fiscal concerns.
Geopolitical tensions are also boosting gold’s appeal. Iran warned the US of legal consequences if Israel attacks its nuclear sites, raising fears of conflict in the Middle East. This uncertainty further supports gold as a refuge for investors.
Gold prices have found support near $3,308, bouncing off a key technical level and showing signs of upward momentum. A bullish pattern on hourly charts suggests gold could break above the immediate resistance at $3,322. If it holds above this level, the next targets are $3,345 and $3,379.
Traders looking to capitalize on this move might consider entering positions above $3,322, with stop-loss orders just below $3,299 to manage risk. The ongoing risk-off sentiment in markets could drive gold prices higher in the near term.
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