Gold pressured as USD gains on US government funding deal
The post Gold pressured as USD gains on US government funding deal appeared on BitcoinEthereumNews.com.
Gold (XAU/USD) is witnessing heavy liquidation for the second straight day on Friday, following the parabolic rise of more than 25% since the beginning of this month and a series of record highs set over the past two weeks or so. The US Dollar (USD) gains some positive traction amid the optimism over a Senate deal to fund the federal government through the remainder of the fiscal year. This helps ease near-term political uncertainty and turns out to be a key factor undermining the safe-haven precious metal. However, the risk of the Federal Reserve (Fed) losing its independence, along with prospects for lower US interest rates, might keep a lid on any meaningful USD appreciation and support the lower-yielding Gold. Moreover, US President Donald Trump’s tariff threats and persistent geopolitical uncertainties might continue to weigh on investors’ sentiment, which should further contribute to limiting losses for the bullion. This warrants some caution before confirming that the XAU/USD pair has topped out. Daily Digest Market Movers: Gold is pressured by the optimism over the government funding deal, modest USD strength Democrats and the White House have struck a deal to temporarily fund the Department of Homeland Security as lawmakers rush to pass the spending package by Friday to avoid a partial US government shutdown. The US Dollar gets a minor boost in reaction to the news, prompting fresh selling around the Gold during the Asian session on Friday. Meanwhile, US President Donald Trump said on Thursday that he wanted to avoid using military force against Iran, further boosting investors’ confidence. Market players, however, remain on edge amid Trump’s threat to impose 50% tariffs on Canada-made aircraft until American-made Gulfstream jets receive certification in Canada. Trump took another jab at Federal Reserve Chairman Jerome Powell and said on Truth Social that the…
Filed under: News - @ January 30, 2026 5:27 am