Edward Meer, metals analyst at Marks Financial Services, said gold could stay in the $1965-$2020 range over the next couple of weeks, but the overall trend remains somewhat weak as growing optimism towards the debt ceiling crisis is also likely to lead to increased constraints on the alloy.
He added that many macro numbers in the US came out stronger than expected, giving the impression that the Federal Reserve (the US central bank) is unlikely to stop raising interest rates in June. .
He added that the specter of rising interest rates portends a negative outlook on gold.
US President Joe Biden and Kevin McCarthy, the Republican Speaker of the House of Representatives, on Wednesday confirmed their intention to reach an agreement soon to raise the federal government’s debt ceiling to $31.4 trillion and avoid a catastrophic default. .
The price change
Spot gold prices remained unchanged at $1,979.76 an ounce, at 0445 GMT. U.S. gold futures fell 0.1% to $1,982.60, according to Reuters data.
The dollar index hovered near a seven-week high in the previous trading session, making gold more expensive for overseas investors.
In terms of other precious metals, the spot price of silver fell 0.4% to $23.63 an ounce, and the price of platinum fell 0.3% to $1065.08, while palladium rose 0.1% to $1488.21 an ounce.
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