Brian Lane, managing director of Gold Silver Central, said while investors see the uncertainties surrounding the US debt ceiling talks and expect a pause in US interest rate hikes, they seems to be a minimum of profit taking which drives prices down.
Gold rose yesterday, Thursday, after data showed a jump in weekly jobless claims in the United States and an annual increase in producer prices last month at the lowest pace in more than two years, but the yellow metal has lost its luster with the rising dollar, making gold more expensive for overseas buyers.
Meanwhile, a White House spokesman said yesterday, Thursday, that a meeting scheduled for today on the debt ceiling between President Joe Biden and senior lawmakers has been postponed, and the two sides have agreed to meet next week.
Gold tends to gain in times of economic or financial uncertainty as a safe haven, while low interest rates also increase demand for non-performing assets.
Markets are currently pricing in a 92.8% chance that the Federal Reserve (US central bank) will keep interest rates at their current level in June.
The price change
At 03:01 GMT, spot gold fell 0.3% to $2010.29 an ounce, down 0.3% for the week. US gold futures fell 0.3% to $2,015.00.
As for other precious metals, silver fell 0.8% in spot trades to $23.98 an ounce. Platinum fell 1% to $1,083.24, according to Reuters data.
Palladium rose 0.5% to $1,558.50 an ounce.
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