Spot gold prices closed higher on Tuesday, marking a third straight day of gains and reaching a one-week high. In New York trading, gold moved within a daily range of $3,283.50 to $3,325.20 per ounce, eventually settling at $3,313.90—up $23.70, or 0.72%. U.S. gold futures for June delivery also advanced, closing at $3,317.20 per ounce, a gain of about 1%.
The rally was largely driven by a weaker U.S. dollar, which fell 0.5% on the day, touching a two-week low. Markets are becoming increasingly concerned about the U.S. fiscal outlook, especially the future of tax reforms introduced during the Trump administration. The uncertainty surrounding possible revisions or extensions of those policies has weighed on the dollar, making gold more appealing for investors using other currencies.
Heightened geopolitical tensions also fueled safe-haven demand. Sources reported that Israel might be preparing a strike on Iranian nuclear facilities, raising fears of further instability in the Middle East. At the same time, U.S.-China trade talks remain stalled, leaving investors cautious about the global economic outlook. These risk factors have strengthened gold’s appeal as a safe-haven asset.
From a technical perspective, gold has broken above the key $3,300 level and surpassed its 20-day moving average, encouraging bullish sentiment. In Asia, particularly China, demand for physical gold has picked up. With the Chinese yuan under pressure, some investors are increasing their holdings in gold as a hedge against currency devaluation, which has also helped support prices.
Looking ahead, gold is likely to stay in a volatile but elevated range in the short term. Investors will be keeping a close watch on developments in U.S. fiscal policy, any signals from the Federal Reserve regarding interest rate moves, and ongoing geopolitical risks. If the dollar remains weak and risk aversion persists, gold could make a run toward its previous high near $3,500. That said, it’s important to watch for potential pullbacks due to profit-taking or a rebound in the dollar.