Gold down on stable dollar and US debt ceiling negotiations

Gold prices fell today, Monday, with the stability of the dollar, but the prolonged discussions about raising the US debt ceiling and statements by Jerome Powell, Chairman of the Federal Reserve (Central Bank) about slowing the pace of raising interest rates, limited the yellow metal’s incurring more losses.

By 0611 GMT, spot gold fell 0.2 percent to $1971.79 an ounce, and US gold futures fell 0.3 percent to $1975.00 an ounce.

According to “Reuters”, the dollar index rose 0.1 percent, which makes gold more expensive for buyers abroad.

US President Joe Biden and Republican House Speaker Kevin McCarthy will meet today, Monday, to discuss raising the debt ceiling, and attention is drawn to this meeting to see if a solution to that crisis will be reached after negotiations stopped on Friday.

Gold prices rose 1 percent on Friday after the head of the Federal Reserve said it was not yet clear whether there was a need for more interest rate hikes amid uncertainty surrounding the impact of both the previous hikes and the latest crisis in the banking sector with the fact that inflation showed Its hard to control.

Bullion that does not yield a return becomes less attractive in a market witnessing high interest rates

According to analyst Wang Tao of Reuters, gold may exceed the $1,985 limit, and climb to a range between $1,992 and $2,003, before retreating.

As for other precious metals, silver fell in spot transactions by 0.9 percent, to $ 23.62 an ounce, and platinum fell 0.4 percent, to $ 1,058.62, and palladium lost 0.5 percent, recording $ 1,505.56.