Gold down as US debt ceiling talks dominate the market trend

Gold prices moved slightly today, Thursday, after the dollar’s rise and increased optimism about talks to raise the US debt ceiling weakened the yellow metal’s attractiveness as a safe haven.

According to Reuters, the spot gold price remained unchanged at $1979.76 an ounce by 0445 GMT. US gold futures fell 0.1 percent to $1,982.60.

The dollar index hovered near a seven-week high in the previous trading session, making gold more expensive for foreign investors.

Edward Meer, a metals analyst at Marks Financial Services, said that gold may remain in a range ranging from 1965 to 2020 dollars during the next two weeks, but the general trend remains somewhat weak as the growing optimism towards a ceiling crisis is also likely to lead Religion to increase the pressure on the alloy.

He added that many macroeconomic numbers in the United States came out stronger than expected, and this leads to perceptions that the Federal Reserve (the US central bank) will likely not stop raising interest rates in June.

He added that the specter of rising interest rates portends a negative reflection on gold

On Wednesday, US President Joe Biden and Kevin McCarthy, the Republican Speaker of the House of Representatives, confirmed their intention to reach an agreement soon to raise the federal government’s debt ceiling of $31.4 trillion and avoid a catastrophic default.

In terms of other precious metals, the price of silver in spot transactions declined 0.4 percent to 23.63 dollars an ounce, and the price of platinum decreased 0.3 percent to 1065.08 dollars, while palladium rose 0.1 percent to 1488.21 dollars.