The Stock Market Fluctuates, Gold Prices Surge.

Gold Price Surges Past $3,300/ounce

In today’s trading session (May 23), the spot gold price rose 0.3% to $3,303.09 per ounce. Gold prices climbed over 3% this week, marking the biggest weekly and monthly gain since April 7. Gold futures in the US also increased by 0.2%, reaching $3,302.80 per ounce.

The weakening US dollar propelled the positive performance of gold. The US Dollar Index (.DXY) dropped over 1% this week, registering the greenback’s steepest weekly decline. This made gold, priced in USD, more affordable for foreign investors, boosting the appeal of the precious metal.

Tim Waterer, Senior Market Analyst at KCM Trade, commented: “Some of the trade optimism has given way to concerns about the US fiscal situation. The hesitation towards US assets has brought gold back into favor. Gold is holding above $3,000 amidst tariffs, US debt, and political tensions continuing to influence financial markets.”

On Thursday, the US House passed a massive tax and spending bill. The bill advances President Trump’s policy agenda and is expected to add trillions to the national debt, according to experts.

The bill has now moved to the Senate, raising concerns about the long-term management of US public debt.

The US Treasury struggled to sell $16 billion in 20-year bonds on Wednesday due to weak investor demand. Market sentiment was impacted by Moody’s downgrade of the US AAA rating last week, further pressuring the dollar and supporting gold prices.

Silver spot prices rose 0.2% to $33.13 an ounce. Platinum climbed 0.4% to $1,085.89 an ounce. In contrast, palladium fell 0.5% to $1,009.69 an ounce.

Stock Market Volatility

Asian stock markets edged higher in the final trading session of the week. The US bond market recovered somewhat after the US House passed President Donald Trump’s large tax bill. However, concerns about the debt burden of the world’s largest economy persist.

Overnight, global PMI data indicated that US business activity accelerated in May. The positive news boosted Wall Street in early trading, but profit-taking pressures later led to a flat close.

In Japan, long-term government bond yields surged this week, hitting record highs. The yield on 30-year bonds rose 23 basis points to 3.175%. The Bank of Japan is closely monitoring the situation.

The MSCI Asia Pacific Index outside of Japan (.MIAPJ0000PUS) inched up 0.1% in the session and is on track for a 0.4% weekly loss, snapping a five-week winning streak.

In China, the CSI300 and Hong Kong’s Hang Seng indexes were nearly flat. Japan’s Nikkei 225 gained 1% as data showed the country’s core inflation rising at the fastest pace in over two years.

The US dollar continued to weaken for the sixth straight session, heading for a 1.2% weekly loss against a basket of major currencies. The euro benefited from the dollar’s decline, rising 0.2% to $1.1302 and on track for its first weekly gain in five.

Speaking on Thursday, Federal Reserve Governor Christopher Waller stated that there is still a possibility of an interest rate cut by the end of the year. However, he noted that this decision depends on the stability of the Trump administration’s tariff policies going forward.