Gold prices eased on Thursday after briefly reaching a near two-week high, with spot gold down 0.3% at $3,303.82.
The pullback followed a modest rebound in the U.S. dollar, which tends to make gold relatively more expensive for investors using other currencies.
Despite the dip, concerns about the United States’ swelling $36 trillion debt and ongoing weak demand for U.S. Treasury securities have helped support bullion, keeping prices comfortably above the $3,300 level.
Market analysts say gold is likely to remain resilient as long as investor sentiment deteriorates around the U.S. fiscal outlook, with debt worries and Treasury demand continuing to underpin safe-haven interest in the metal.