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Gold set for monthly drop as US debt agreement saps appeal

31 May 2023 07:50 (UTC +04:00)

Gold prices eased on Wednesday, set for a monthly drop, as progress in the U.S. debt ceiling deal and expectations that the Federal Reserve will likely raise interest rates further eroded bullion's safe-haven status, APA reports citing Reuters.

Legislation brokered by U.S. President Joe Biden and House Speaker Kevin McCarthy to lift the $31.4 trillion debt ceiling and achieve new federal spending cuts passed an important hurdle, advancing to the full House of Representatives for debate and an expected vote on passage on Wednesday.

Spot gold fell 0.2% to $1,955.28 per ounce by 0243 GMT, and lost 1.7% so far this month. U.S. gold futures eased 0.2% to $1,954.80.

Gold prices have come off their recent near-record highs reached early in May.

Spot silver fell 0.4% to $23.11, platinum shed 0.5% to $1,008.92, while palladium rose 0.19% to $1,403.30 per ounce. All contracts were set for a monthly loss.