Gold is rising amid fears of worsening US debt and weak demand for treasury bonds.

Gold prices rose during trading on Thursday, May 22, supported by investors turning to the precious metal as a safe haven amid increasing concerns about US government debt levels and weak demand for 20-year treasury bonds.

Gold futures rose by about 0.8% to reach $3338.9 per ounce, while spot delivery prices increased by 0.7% to $3336.21.

This increase comes at a time of declining demand for US assets, as the Treasury Department received weak interest in a $16 billion auction of 20-year bonds on Wednesday.

In a related context, US House Speaker Mike Johnson revealed that a tax and spending bill proposed by President Donald Trump is nearing a vote.

This move is believed to ease objections from previously resistant Republicans, although the bill has raised economic concerns due to the possibility of exacerbating public debt by an estimated $3 to $5 trillion.