“Gold Prices Fall Amid Anticipation of US Debt Ceiling Crisis Talks”

Gold prices fell today, Tuesday, affected by the strength of the dollar, while investors monitored the continued attempts to reach an agreement to end the debt ceiling crisis in the United States.

Gold in spot transactions fell 0.4% to $1962.06 an ounce, and US gold futures fell 0.6% to $1965.70.

A stronger dollar makes gold less attractive to overseas buyers.

US President Joe Biden and House Speaker Kevin McCarthy were unable to reach an agreement yesterday, Monday, on how to raise the federal government’s debt ceiling of $ 31.4 trillion, just ten days before a possible stumbling block that could throw the economy into chaos.

As for other precious metals, spot silver fell 0.5% to $23.55 an ounce, palladium fell 0.4% to $1485.59, while platinum settled at $1066.59.

Biden and McCarthy held discussions, but they ended without reaching an agreement on how to raise the US government’s debt ceiling of $31.4 trillion.

President Biden acknowledged the continuation of the “differences” that their negotiating teams must resolve within just a few days.

And US Treasury Secretary Janet Yellen said that June 1 is still an irreversible “deadline” for raising the federal debt ceiling, given the slim chances that the government will collect enough revenues to enable it to meet its obligations until June 15.

The two sides have only 10 days left to reach an agreement to raise the federal government’s debt ceiling, otherwise it may default in an unprecedented way on obligations, and experts warn that this scenario may lead to a recession.