Gold Gains on US Credit Downgrade, Tax Risk

GOLD XAUUSD Gold (XAU/USD) surged to a one-week high of $3,306 on Tuesday, fueled by rising concerns over the U.S. economic outlook. The metal benefited from a weaker dollar, following Moody’s downgrade of the U.S. credit rating and renewed fears over President Trump’s proposed tax cuts, which could add $3–5 trillion to the national debt. Global risk sentiment also took a hit, with ongoing U.S.-Japan trade tensions and muted progress in U.S.-China talks.

Technically, gold is approaching key resistance at $3,306. A firm breakout above $3,306 would signal bullish continuation, while short-term support lies at $3,288 and $3,240. The RSI around 60 suggests consolidation may precede another push higher.

With central banks citing U.S. policy uncertainty and geopolitical risks lingering, gold’s safe-haven appeal remains intact.

• Resistance : $3,306 , $3,364
  
  
• Support : $3,288 , $3,240