In the wake of the approaching signing of an agreement to raise the US debt ceiling, gold prices are heading down, with expectations of the Federal Reserve raising interest rates, in parallel with the stability of the dollar index.
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Gold prices are declining and the US dollar index is stable
Today, Wednesday, gold prices are heading to end the month of May on a decline, as progress in steps to conclude an agreement to raise the US debt ceiling, and expectations that the Federal Reserve will raise interest rates, supported the dollar’s location, and reduced the attractiveness of the precious metal as a safe haven.
The legislation agreed upon by the 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 Rules Committee in the House of Representatives, and sent to the full house for its discussion and expected vote on it.
Spot gold prices stabilized at $1959.64 an ounce by 04:56 GMT, and gold has fallen 1.5% so far this month. US gold futures will not witness a significant change to settle at $1959.30.
Read also: The US House of Representatives passes legislation that raises the debt ceiling and cuts spending
At the same time, the dollar index stabilized, eliminating the support that gold prices received from the decline in the US Treasury yield for 10 years.
As for other precious metals, silver fell in spot transactions by 0.1% to $23.18 an ounce, and platinum also fell 0.1% to $1012.62, while palladium increased 1% to $1414.27. All of these metals are heading for a monthly decline.
Also read: What are the broad lines of the Biden and McCarthy agreement regarding raising the US debt ceiling?
2023-05-31 07:11:36
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