Gold prices fell today, Friday, with the dollar rising, but lingering economic fears and confrontation over the US national debt ceiling have contained losses in the yellow metal.
By 0301 GMT, spot gold was down 0.3% to $2010.29 an ounce, down 0.3% on the week. US gold futures fell 0.3% to $2015.00.
Brian Lan, managing director of Gold Silver Central, said that while investors are looking at the uncertainty surrounding debt ceiling talks in the United States and expecting a pause in U.S. interest rate hikes, it looks like a little profit-taking is driving prices down. quoted by Reuters.
Gold edged higher yesterday Thursday after data showed a spike in US weekly jobless claims and annual producer price increases last month at the slowest pace in more than two years, but the yellow metal lost its luster as the dollar rallied, which makes gold more expensive for buyers abroad.
Meanwhile, a White House official said yesterday Thursday that a debt ceiling meeting scheduled for today between President Joe Biden and senior lawmakers has been postponed and the parties have agreed to meet next week.
Gold tends to rise in times of economic or financial uncertainty as a safe haven, while low interest rates also increase demand for unprofitable assets.
Markets are currently factoring in a 92.8% chance that the Federal Reserve will keep interest rates at current levels in June.
As for other precious metals, silver in spot transactions fell by 0.8% to $23.98 per ounce. Platinum fell 1% to $1,083.24.
Palladium rose 0.5% to $1,558.50.
