Gold Shows Another Strong Move To The Upside

(RTTNews) - The price of gold extended the strong upward move seen over the two previous sessions on Wednesday amid U.S. fiscal uncertainty as President Donald Trump's sweeping tax bill inches through Congress.

Gold for May delivery jumped $29 or 0.9 percent to $3,309.30, surging by more 4.0 percent over the past three sessions.

The precious metal continued to benefit from a decrease in the value of the U.S. dollar, with the U.S. dollar index sliding by 0.7 percent.

Trump's sweeping tax and spending bill is one step closer to a full vote in the House of Representatives, with economists warning the proposal would add more than $2.5 trillion to the federal debt—currently at an all-time high of $36.8 trillion—over the next decade.

According to an interview published by the Financial Times today, International Monetary Fund First Deputy Managing Director Gita Gopinath said that U.S. fiscal deficits are too large and the country needs to tackle its "ever-increasing" debt burden.

Federal Reserve Bank of St. Louis President Alberto Musalem warned in remarks at the Economic Club of Minnesota that the risks of getting inflation wrong are high and that the Fed's credibility could be hurt as a result.

Geopolitical concerns also remained on investors radar, with reports suggesting that Israel is preparing to strike Iranian nuclear facilities.