Gold prices fell to their lowest level in more than a month at the settlement of trading on Wednesday, with the rise of the dollar and the continuation of the US debt ceiling crisis negotiations.
Gold futures contracts for June delivery fell by 0.4%, or $8.1, to reach $1984.9 an ounce, the lowest level since the end of last March.
While the dollar index, which measures the performance of the US currency against a basket of six major currencies, rose 0.2% at 102.80 points at 07:41 pm Cairo local time, after touching during the session its highest level in seven weeks at 103.11 points.
The statements of US President “Joe Biden” provided support for the dollar and bond yields at the expense of the precious metal, as he expressed confidence that the United States will not default in fulfilling obligations and paying debts, indicating that yesterday’s meeting with senior congressional leaders was fruitful.
“Gita Gopinath,” Senior Deputy Managing Director of the International Monetary Fund, expressed concern that price pressures seem to be pervasive in many economies and that the risks of high inflation rates are great, so central banks must realize that insufficient monetary tightening currently may require more painful measures in the future. .
A Reuters survey showed that more than 60% of economists polled by the agency believe that the Federal Reserve will fix interest rates at the current level in a range between 5% and 5.25% until the end of 2023.
Markets are awaiting the release of unemployment benefits data in the United States on Thursday, ahead of Federal Reserve Chairman Jerome Powell’s speech on Friday, to anticipate the course of monetary policy during the coming period.