Gold prices edged higher on Friday after a sharp decline the previous day. They are on track to finish the week higher on concerns about the U.S. budget deficit and new trade tariffs. Spot gold rose 0.3% to $3,337.50 an ounce, while gold futures for August rose 0.1% to $3,347.52 an ounce.
On Thursday, gold fell nearly 1% after a strong U.S. jobs report reduced the likelihood of the Federal Reserve cutting interest rates this month. However, gold, which has been falling for the past two weeks, is expected to rise about 1.8% this week.
So far, the U.S. has only struck trade deals with the U.K. and Vietnam, and has only made a limited deal with China. Concerns about heightened trade conflicts and unclear tariff rules have helped boost demand for gold.
The Congressional Budget Office estimates that the bill could add $3.4 trillion to the current national debt of $36.2 trillion. Meanwhile, central banks around the world added 20 tons of gold to their reserves in May — about 67% more than in April, but still less than the average over the past 12 months.
Kazakhstan was the biggest buyer in May, adding 7 tons. So far this year, it has bought more than 14 tons. Poland and Turkey followed, each buying 6 tons in May. Poland has added 67 tons and Turkey 15 tons this year.
