Gold fell today, with the rise of the dollar, after the statements of US Federal Reserve officials raised doubts about the bank’s intention to cut interest this year.
Spot gold fell 0.4 percent to $1981.39 an ounce by 1815 GMT, after touching its lowest level since April 27, and US gold futures fell 0.4 percent to $1984.90.
Jim Wyckoff, an analyst at Kitco Metals, said that the dollar’s jump, partly driven by the statements of US Federal Reserve officials, “which tend to support rate hikes in general,” pressured the metals markets.
He added that the failure of the United States to pay its obligations would support gold, but most market participants do not seem to see this.
According to Reuters, US President Joe Biden and Republican Congressional Leader Kevin McCarthy stressed their intention to reach an agreement soon to raise the public debt ceiling.
The dollar index rose to its highest level in seven weeks, which undermined the attractiveness of the precious metal, which competes with the US currency, as a safe haven.
“It’s too early to talk about a rate cut,” Chicago Fed President Austan Goolsby said on Tuesday, while Cleveland Fed President Loretta Mester said interest rates had not yet reached a point where they could be sustained.
As for other precious metals, silver was unchanged at $23.74 an ounce, while platinum rose 1.1 percent to $1,068.74, and palladium fell 0.9 percent to $1,488.23.
