Lukman Otunga, senior research analyst at FXTM, said gold’s losses were limited by concerns over the US debt ceiling issue and lingering concerns over the country’s banking sector.
A meeting was scheduled for Friday between President Joe Biden and his Republican opponents concerning the raising of the American debt ceiling, but the White House announced the postponement of these talks to “early next week”.
Congressional Republicans are demanding that Biden agree to a significant reduction in budget spending initially, before agreeing to raise the debt ceiling, a move that will allow the government to borrow more money.
On Friday, US Treasury Secretary Janet Yellen confirmed continued uncertainty over when the cash needed to pay government debts will run out, and warned again that Congress’ failure to raise the the $31.4 trillion debt would spell economic and financial disaster.
Gold tends to gain in times of economic or financial uncertainty as a safe haven.
Markets are currently pricing in a 90% chance that the US Federal Reserve will keep interest rates at their current level in June.
market performance
Gold fell 0.6% on spot to $2003.08 an ounce at 10:01 GMT, down 0.7% over the week, and US gold futures fell 0.7% to $2006.60.
As for other precious metals, silver fell in spot trades 1.6% to $23.78 an ounce, platinum fell 1% to $1082.59 an ounce and palladium rose. up 0.8% to $1,563.39 an ounce.
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