US President Joe Biden and Republican House Speaker Kevin McCarthy are close to reaching an agreement to avoid an imminent default, and economic concerns prompted Biden to cut short a trip to Asia this week.
Bullion fell below the $2,000 level on Tuesday after U.S. retail sales data and hawkish comments from Federal Reserve officials raised expectations of a delay in interest rate cuts. interest.
Meanwhile, the dollar, a rival safe haven, maintained its strength during the day, making gold less attractive to overseas buyers. Higher interest rates also reduce the attractiveness of non-performing bullion.
CME Group’s Videowatch service says markets are 82.1% expecting the US central bank to keep interest rates unchanged in June.
price movement
Gold prices rose 0.1% in spot trades to hit $1991.35 an ounce at 0455 GMT.
U.S. gold futures were little changed, hitting $1995.20 an ounce.
As for other precious metals, spot silver rose 0.1% to $23.76 an ounce, after hitting a six-week low in the previous session.
Platinum also rose 0.6% to $1,063.71 and palladium 0.3% to $1,505.93 an ounce.
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