×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: gold | u.s. debt ceiling

Gold Regains Strength as Debt Ceiling Talks Drag on

Gold Regains Strength as Debt Ceiling Talks Drag on
(AP)

Monday, 15 May 2023 06:43 AM EDT

Gold regained its footing Monday after three straight sessions of losses as the dollar eased and investors remained wary of the U.S. debt ceiling standoff that could fuel worries of a global economic slowdown.

Spot gold was up 0.2% at $2,015.80 per ounce by 0927 GMT, having hit its lowest since May 5 on Friday. U.S. gold futures ticked up 0.1% to $2,021.40.

"Bullion remains supported above $2,000 by persistent anxiety over ongoing U.S. debt-ceiling talks as well as hopes that the Fed is done with its rate hikes," said Han Tan, chief market analyst at Exinity.

U.S. consumer sentiment slumped to a six-month low in May on worries that political haggling over raising the federal government's borrowing cap could trigger a recession.

U.S. President Joe Biden said he expects to meet with congressional leaders on Tuesday for talks on a plan to raise the nation's debt limit and avoid a catastrophic default.

"Still, gold risks being temporarily dragged back into the sub-$2,000 domain on a major risk-on wave stemming from a deal to lift the U.S. debt ceiling in the immediate term," Exinity's Tan said.

He added that bullion may also be forced to pare more of its recent gains if Fed speakers signal another rate hike.

While bullion tends to gain during events of uncertainty, higher interest rates dim its appeal.

A host of Fed officials including Chair Jerome Powell are due to speak this week. Markets are pricing in a 78.8% chance of the Fed holding rates at the current level in June, according to the CME FedWatch tool.

Fed Governor Michelle Bowman said on Friday the central bank probably will need to raise interest rates further if inflation stays high.

Elsewhere, spot silver rose 0.5% to $24.03 per ounce, platinum gained 0.8% to $1,057.79, and palladium climbed 1.4% to $1,529.95.

© 2024 Thomson/Reuters. All rights reserved.


StreetTalk
Gold regained its footing Monday after three straight sessions of losses as the dollar eased and investors remained wary of the U.S. debt ceiling standoff that could fuel worries of a global economic slowdown.
gold, u.s. debt ceiling
304
2023-43-15
Monday, 15 May 2023 06:43 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved