Gold prices rose today Friday, heading for a positive week as safe-haven demand surged due to a massive sell-off of U.S. Treasury bonds amid growing concerns over high government debt.
Gold was trading up about 5% this week, its best performance since early April, as traders sought refuge in the precious metal amid rising worries about high levels of U.S. government debt.
This was reflected in a prolonged sell-off of Treasury bonds this week, which substantially raised yields and pressured the dollar.
Concerns about U.S. debt were initially triggered by Moody's (NYSE:MCO) downgrade of the U.S. sovereign rating.
The progress of a tax and spending cut bill backed by President Donald Trump also influenced concerns about fiscal health. The bill, which narrowly passed the House of Representatives on Thursday, is expected to add more than $3 trillion to the national debt over the next decade, according to nonpartisan analysts.
Also contributing to the rise in gold prices were data showing that China's gold imports rose to an 11-month high last month despite record prices, according to customs data.