Monday, May 29, 2023

Gold hits near 2-month low on US debt deal hopes

The price of gold fell, after strong US economic readings eased bets that the Federal Reserve could reduce interest rate hikes, and as it was also weighed down by optimism that a deal would be struck to raise the debt ceiling. May go.

Spot gold fell 1.3% to $1,956.79 an ounce, its lowest level since April 3 at $1,951.73. In the United States, gold futures also declined by 1.3% to close at u$s1,959.80.

The number of new US jobless claims was lower than expected last week, accompanied by a smaller decline in the Philadelphia Fed business index.

“Along with a relatively lively job market, some optimism about debt ceiling talks has also strengthened the dollar and supported equities,” said David Mager, director of metals trading at High Ridge Futures. He said, ‘Now we are not as positive about the gold market as we were for several months.’

Markets now place a roughly 20% chance of another rate hike in June, compared with 20% bets for a cut a month ago. Bullion, which doesn’t pay interest, suffers when higher rates outpace returns on other assets like bonds.

Dallas Fed President Laurie Logan said that inflation has not yet eased enough to allow the Fed to hold off on raising rates in June, while Fed Governor Philip Jefferson assured that the full effects of the rapid increase so far have not been fully realized. It is too early to judge.

Both sit on the Fed panel that sets monetary policy.

Among other precious metals, silver fell 1.1% to $23.47 an ounce; Platinum fell 1.9% to $1,048.27; And palladium fell 1.9% to $1,458.87.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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