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Dollar strength drives down gold prices, despite debt ceiling crisis

October 2, 2025

The strength of the US dollar makes gold less attractive to foreign buyers.

US President Joe Biden and House Speaker Kevin McCarthy failed to reach an agreement yesterday, Monday, on how to raise the federal government’s debt ceiling to $31.4 trillion, just ten days before a potential stumbling block that could throw the economy into chaos.

But they have vowed to continue the talks.

price movements

Gold fell in spot trading, 0.4%, to $1,962.06 an ounce at 03:06 GMT.

US gold futures also fell 0.6% to $1,965.70.

And prices for the yellow metal fell in the early sessions of the week on Monday on the strength of the green currency, as well as investor anticipation over debt ceiling talks in the United States.

In other precious metals, spot silver fell 0.5% to $23.55 an ounce, palladium fell 0.4% to $1,485.59, while platinum s stabilized at $1066.59.

Read the Latest World News Today on The Eastern Herald.

Arab Desk

Arab Desk

The Arab Desk leads The Eastern Herald's reporting on the Middle East and North Africa. The desk has covered the Gaza-Israel war since October 2023, the Iran-Israel war of 2025-2026, the fall of the Assad government in Syria, Hezbollah's political and military shifts in Lebanon, the war in Yemen, and the diplomatic realignment of the Gulf states under the Abraham Accords and the Saudi-Iranian rapprochement.

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