Gold stabilizes but heads to incur a monthly loss ‎

Gold prices are heading today, Wednesday, to end the month of May on a decline, as progress in the steps to conclude the US debt ceiling agreement and expectations that the Federal Reserve (the US central bank) will raise interest rates supported the dollar’s position and reduced the attractiveness of the precious metal as a safe haven.

According to “Reuters”, the legislation agreed upon by US President Joe Biden and Speaker of the House of Representatives Kevin McCarthy to raise the debt ceiling of $ 31.4 trillion passed an important obstacle, as it was approved by the House Rules Committee and sent to the full House for discussion and a vote expected on it today, Wednesday. ..

Spot gold prices stabilized at $1,959.64 an ounce by 0456 GMT, and gold has fallen 1.5 percent so far this month. The US gold futures contract witnessed little change, to settle at $1959.30

At the same time, the dollar index stabilized, eliminating the support that gold prices received from the decline in the yield of US Treasury bonds for 10 years.

Dealers in futures contracts for the Federal Reserve funds are likely to raise the central bank interest rates next month, as economic data exceeded expectations and it seems that members of Congress have reached an agreement to raise the debt ceiling.

High interest rates would weaken the attractiveness of gold, which does not yield a return

As for other precious metals, silver fell in spot transactions by 0.1 percent, to $ 23.18 an ounce, and platinum also decreased by 0.1 percent, to $ 1012.62, while palladium increased by one percent, to $ 1414.27. All these metals are heading for a monthly decline.