Gold prices are on their way to achieving the biggest weekly profits in over a month

Gold prices tend to record the biggest weekly profits in more than a month, in light of the increasing concern of investors over the financial deficit in the United States, which strengthened the attraction of the precious metal as a safe haven. The price of gold has risen to over $ 3300 per ounce, and it achieves weekly profits about 3%. This increase came after the decision of the ‘Moody’s’ credit rating agency to reduce the sovereign rating of the United States, which provoked the market over the stability of the US financial situation. The fears have increased after the assumption of a tax bill with the signature of President Donald Trump in the House of Representatives, on the way to the Senate, where it is expected to exacerbate the already infiltrated deficit. This combination of financial and political risks has increased the demand for gold, as it is one of the most important safe ports in times of economic uncertainty. Geopolitical and commercial concerns The price of gold has risen by more than 25% since the beginning of the year, and is now about 200 dollars from the highest level, which he reached last month. This increase is due to the effects of the US trade war, which has strengthened the demand for safe ports, as well as the escalation of recent concerns about the US financial deficit. Central banks also continued to buy gold with the aim of diversifying their cash reserves. “Gold prices are likely to remain within a limited series in the short term, but continuous geopolitical tensions, and anxiety over US financial expectations is increasingly supported,” Global X ETFS said. The size of the US Treasury bonds has circulated from $ 4.5 trillion in 2007 to about 30 trillion today, while the percentage of public debt to the size of the economy increased from about 35% to 100%, according to the budget office in Congress. Treasury bonds returned for ten years this week to exceed 4.5%. In the past, it was a great pressure on gold as it is not benefit, and gold usually moves in vice versa with the yields. But this relationship is now weaker. The gold was made 0.3% at $ 3,304.81 per gram in Singapore on Friday morning, after it was closed to 0.6% in the Thursday session. As for the Bloomberg index of the dollar power, it remained stable to record a weekly loss. Silver, Baladium and Platinum won this week, with platinum climbing 10% to its highest level in a year.