Gold news

Spot gold fell 0.2% to $1,977.79 per ounce by 0653 GMT.

U.S. gold futures edged 0.1% lower to $1,982.10.

The dollar index traded near a seven-week high reached in the previous session,

making gold less affordable for overseas investors.

Gold could remain in the $1,965-$2,020 range over the next two weeks,

but the general trend remains fairly weak as increasing optimism around the debt ceiling talks

is also likely to heap pressure on bullion, said Edward Meir, a metals analyst at Marex.

Many of the U.S. macro numbers have come in stronger than expected

and this is leading to perceptions that the Fed will probably not pause in June,

and the spectre of higher rates is bearish for gold, Meir added.

U.S. President Joe Biden and top congressional Republican Kevin McCarthy on Wednesday

underscored their determination to reach a deal soon to raise the federal

government’s $31.4 trillion debt ceiling and avoid an economically catastrophic default.

In the broader market, Asia-Pacific stocks rallied, following Wall Street’s lead.

“To some extent, there was tentative progress with the debt ceiling,

and that takes away some market uncertainty,

lending a modest boost to sentiment,”

said OCBC FX strategist Christopher Wong,

adding this weighed on gold prices.

Meanwhile, markets are pricing in a 69.3% chance of the U.S. central bank

holding rates at current levels in June, according to the CME FedWatch tool,

and traders have also dialled back expectations of a rate cut this year.

Spot silver fell 0.5% to $23.61 per ounce, platinum shed 0.2% to $1,066.71,

and palladium lost 0.4% to $1,480.85.

The decline in silver so far this month

“could be closer to some tentative stabilisation,” Wong added.

artıcle name Gold ticks lower as US debt

Gold ticks lower as US debt