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Gold eases on firmer dollar even as debt ceiling impasse drags on

23 May 2023 09:49 (UTC +04:00)

Gold prices fell on Tuesday, weighed down by a stronger dollar and hawkish remarks by some Federal Reserve members, while investors kept their eyed peeled on the U.S. debt ceiling saga, APA-Economics reports citing CNBC.

Spot gold shed 0.4% to $1,962.06 per ounce by 0306 GMT. U.S. gold futures were down 0.6% at $1,965.70.

The dollar index was firm, making gold less attractive for overseas buyers.

U.S. President Joe Biden and House Speaker Kevin McCarthy could not reach an agreement on Monday on how to raise the U.S. government’s $31.4 trillion debt ceiling with just 10 days before a possible default that could sink the economy, but pledged to keep talking.

Keeping gold in pressure, St. Louis Fed President James Bullard said there might be the need to go higher on the policy rate. Rising rates hurt demand for the zero-yielding asset.