Gold Inches Higher as U.S. Fiscal Worries Grow — What It Means for Gold & Silver Holders

By Franklin Metals Group

Gold recently posted a modest weekly gain of around 2.2%, climbing to roughly $3,344 per ounce as investors reacted to the passage of U.S. tax-cut and spending legislation that analysts warn could widen the deficit by about $3.4 trillion over the next decade. With fiscal uncertainty mounting and the dollar weakening, gold once again played its traditional role as a hedge—and silver benefited from the spillover outlook.

What’s driving gold right now? The U.S. Treasury’s plan to expand spending under the new bill has rattled bond and currency markets. As the Congressional Budget Office highlighted growing deficits, the dollar softened, pushing investors toward gold as a store of value. Gold futures barely budged upward, but the momentum carried physical prices to small but meaningful gains.

Silver also held its ground, hovering in the mid-$36 range, supported by both industrial demand forecasts and its relationship to gold’s move. Though it hasn’t seen the same headline-driven spike, silver remains well-positioned within a bullish macro environment.

Why this matters today is simple: Impending fiscal pressure and currency doubt push both metals closer to investor consciousness. Gold’s rise reflects deep structural trends, and silver—often seen as gold’s junior partner—most often follows, buoyed by industrial usage in solar, electronics, and manufacturing.

For Franklin Metals Group clients, this means a critical moment: whether you’re holding physical bullion, planning industrial sourcing, or recovering materials, today’s signals call for a review of your metals strategy. Holding or accumulating at these levels may position you well for price stability—or further gains—should dollar and deficit concerns deepen.

Sources:

• Reuters: Gold heads for weekly gain as U.S. fiscal worry lifts safe-haven demand 

• WSJ: Silver surges in 2025, attracting industrial use and recycling activity