The dollar index near its highest level in 7 weeks
Washington – Reuters
Published in: May 18, 2023: 10:40 AM GST
Last updated: May 18, 2023: 11:58 AM GST
Gold prices moved slightly today, Thursday, after the rise in the dollar and increased optimism about talks to raise the US debt ceiling weakened the yellow metal’s attractiveness as a safe haven.
The spot gold price remained unchanged at $1,979.76 an ounce by 04:45 GMT. US gold futures fell 0.1% to $1,982.60.
The dollar index hovered near a seven-week high in the previous trading session, making gold more expensive for foreign investors.
Metals analyst at Marks Financial Services, Edward Meyer, said that gold may remain in a range ranging from 1965 to 2020 dollars during the next two weeks, but the general trend remains somewhat weak, as the growing optimism about the debt ceiling crisis is also likely to lead to Increased stress on the alloy.
He added that many macroeconomic numbers in the US came out stronger than expected and this leads to perceptions that the Federal Reserve (the US central bank) will likely not stop raising interest rates in June.
He added that the specter of rising interest rates portends a negative reflection on gold.
US President Joe Biden and Kevin McCarthy, the Republican Speaker of the House of Representatives, confirmed yesterday, Wednesday, their intention to reach an agreement soon to raise the federal government’s debt ceiling of $ 31.4 trillion and avoid a catastrophic default.
In terms of other precious metals, the spot silver price fell 0.4% to $23.63 an ounce, platinum fell 0.3% to $1065.08, while palladium rose 0.1% to $1488.21.