By Sarah Qureshi
(Reuters) – Gold prices rose for a third straight session on Wednesday and hit a one-week high, helped by a softer dollar and safe-haven demand amid economic and geopolitical uncertainty.
Spot gold was up 0.5% at $3,304.17 an ounce, as of 1024 ET (1424 GMT). U.S. gold futures climbed 0.7% to $3,307.00.
The U.S. dollar fell 0.5% against a range of other currencies, making gold less expensive to buy for overseas currency holders. [USD/]
Wall Street’s main indexes slipped and government bond yields rose, as investors closely watched a pivotal debate over U.S. President Donald Trump’s tax-cut bill that has fanned concerns about the country’s growing debt.
“We are kind of paused here in mid-range between the high and recent low, waiting for a signal of more trade and tariff deals,” said Daniel Pavilonis, senior market strategist at RJO Futures said.
The outlook for the U.S. economy remains weak despite a temporary cooling of the U.S.-China trade war, a Reuters poll of economists showed.
Meanwhile, Federal Reserve officials on Tuesday advised patience on interest rate decisions, noting that rising U.S. import tariffs are driving higher prices.
Elsewehere, CNN reported on Tuesday, citing multiple sources, that new intelligence indicates Israel is preparing to strike Iranian nuclear facilities, even as President Trump’s administration is in talks with Iran over its uranium enrichment programme.
Gold is known as a safe investment amid economic and geopolitical turmoil and tends to do well in a low interest rate environment as it yields no interest. Bullion prices had hit a record high of $3,500.05 last month.
“We expect gold’s recent price dip will stimulate investment buying, as macroeconomic and geopolitical uncertainty linger,” said ANZ in a note.
Silver rose 0.5% to $33.23 an ounce.
Platinum was up 1.9% at $1,073.28 after hitting its highest since October 2024 earlier. Palladium added 1.8% to $1,031.70, an over three months peak.
(Reporting by Sarah Qureshi in Bengaluru; Editing by Leroy Leo)
