Ilya Spivak, head of the global macroeconomics unit at Testlife, said markets expect a positive end to talks on the US public debt ceiling as new statements speak of progress, “and with yields of the Treasury and the rise of the dollar at the same time, gold will decline.”
The dollar index fell slightly during the day, but hovered near a two-month high, making gold more expensive for overseas investors.
Two Fed policymakers said US inflation did not appear to be falling fast enough for the US central bank to suspend interest rate hikes.
Fed Chairman Jerome Powell is due to speak at an event later today, and traders will be looking for clues on the monetary policy path.
The price change
Spot gold rose 0.3% to $1,963.39 an ounce at 0418 GMT but was heading for a weekly decline of 2.4%, the biggest since early February.
Gold futures rose 0.2% to $1,964.60.
As for other precious metals, the spot price of silver rose 0.6% to $23.64 an ounce. The price of platinum rose 0.3% to $1,052.43. Palladium rose 1.5% to $1,474.63 an ounce, according to Reuters data.
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