Spot gold surpasses $4180/oz, up 1.13% intraday

(1) A senior analyst from Fitch stated that the budget proposal put forward by the French government is an important measure to control the fiscal deficit. (2) If the proposal ultimately fails to pass, it may have negative consequences. (3) Bariga-Salazar, Fitch’s Head of Western European Sovereign Ratings, pointed out that the plan promoted by French Finance Minister Le Maire to reduce the fiscal deficit to 5% of GDP by 2027 is highly significant. (4) He said that all the fiscal challenges facing France remain, but the plan is important enough that failure to implement it could cause a notable impact. (5) He added that this is a large and very important plan, and the key is whether it can be approved as it currently stands. (6) Earlier this month, Le Maire unveiled a draft budget that includes about 43 billion euros in fiscal adjustment measures. (7) The draft aims to cut the deficit and ease financial market concerns about the state of France's public finances. (8) At the market level, whether the budget passes will affect the spread and rating outlook of French government bonds. (9) Further attention will be paid to the progress of parliamentary review in France and Fitch's assessments regarding France’s sovereign rating.