gold prices fell this Tuesday, May 23, pressured by the advance in the yields of short-term Treasury bonds, while the markets await progress in the negotiation on the debt ceiling, which concluded this afternoon without progress between the representatives of Joe Biden and the Republicans of the United States Congress.
Spot gold fell 0.02% to $1,976.90 an ounce.
Other metals are also trading lower. spot silver fell 1.1% to $23.59 an ounce; platinum fell 1.7% to $1,059.45; and palladium lost 0.02% to $1,452.
Gold rallied from session lows on reports of new debt ceiling talkssaid Daniel Pavilonis, senior market strategist at RJO Futures.
House Republicans said they were making little progress in talks with the White House about raising the debt ceiling, with the country facing the risk of a default in as little as nine days.
“For now, the market hasn’t entirely ruled out another rate hike, and it’s clearly not what it (looked like) just a month ago and that’s leading to this price realignment.”said Ole Hansen, head of commodity strategy at Saxo Bench.
Minneapolis Fed President Neel Kashkarisaid on Tuesday that rates may have to go “above 6%.”
Bullion often falls out of favor with investors when rates rise, since gold does not earn interest.
Source: Ambito
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