Fears of continued interest rate hikes are undermining the appetite for the precious metal
Gold prices fell today, Monday, after reaching a preliminary agreement on suspending the US debt ceiling at the weekend, as fears of continuing interest rate hikes for a longer period undermined appetite for the non-interest-bearing precious metal.
And by 02:52 GMT, spot gold fell 0.1% to $1944.09 an ounce, hovering near its lowest level in two months, which it reached on Friday. There was little change in US gold futures, which recorded $1,943.30 an ounce.
Gold was negatively affected as a safe-haven asset after US President Joe Biden said yesterday, Sunday, that he had finalized a budget agreement with House Speaker Kevin McCarthy that includes suspending the debt ceiling of $ 31.4 trillion until January 1, 2025, and added that the agreement is ready to be presented to the public. Congress to vote on it, quoting the agency “Reuters”.
In addition, data on Friday revealed that US consumer spending increased more than expected in April and that inflation accelerated.
This report enhanced the chances of raising US interest rates by 25 basis points in June to 65.3% and to remain at this level for the rest of the year.
The dollar index rose, which makes gold more expensive for holders of other currencies.
As for other precious currencies, silver fell 0.2% to $23.26 an ounce. Platinum rose 0.1% to $1,023.83 an ounce. Palladium rose 0.3% to $1,428.07 an ounce.
2023-05-29 05:37:00
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