Gold Prices Fall Significantly as US Debt Ceiling Crisis Settles

Investing.com – Gold prices fell significantly during trading, today, Tuesday, as it remained close to its lowest level in two months, and is close to breaking the important level at $1950 an ounce, as prices were affected by optimism about settling the US debt ceiling crisis and reducing bets on stopping gold. Raised by in June.

Today, the markets are awaiting the release of the US Consumer Confidence Index, which is expected to give important signals about the path of the US Federal Reserve’s monetary policy.

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And the dollar now

It fell by 0.55% to $1,952 an ounce.

While spot contracts fell by 0.5% to 1935 dollars an ounce.

On the other hand, it rose by 0.2% to 104,330 points.

gold when settling yesterday

Gold futures fell, at Monday’s settlement, by 0.09%, to $1,959 an ounce. As calmness and stability overshadowed yesterday’s session due to the closure of the American market due to the Martyrs’ Memorial Day holiday.

Optimism about the debt ceiling crisis

US President Joe Biden said Monday that he feels good about Congress passing the debt ceiling agreement he reached with House Speaker Kevin McCarthy.

“I will never say I’m sure of what Congress will do, but I feel good,” Biden told reporters.

He added that he had spoken on Monday with a number of parliamentarians, as well as with Senate Minority Leader Mitch McConnell and “many others.”

The Republican-dominated House of Representatives is supposed to vote on this agreement on Wednesday, to be voted on later by the Senate, in which the Democrats have a slim majority.

Markets are moving away from safe havens

“The crises that caused high volatility in the markets, such as the regional banking crisis in the United States, and whether or not an agreement will be reached on raising the US debt ceiling, are now passing,” said Michael Langford, director of corporate advisory firm AirGuide. gold markets.

On the other hand, Fed officials in recent days have sharpened hawkish expectations on interest rates, and this has also curbed safe-haven flows that had surged due to the US debt ceiling crisis.

Meanwhile, Minneapolis Fed President Neel Kashkari worries about systemic risks. But now, as a US monetary policy maker, he is more worried about inflation.

Markets are now pricing in a 39.9% chance that the Fed will keep interest rates at the current level at the next meeting in June.