Gold prices showed little change on Wednesday, as investors remained concerned about the prolonged negotiations regarding raising the U.S. debt ceiling. Additionally, the rising dollar has kept prices in check. Spot gold prices rose 0.1% to $1,991.35 per ounce by 04:55 GMT. U.S. gold futures also saw a slight change, reaching $1,995.20 per ounce.
U.S. President Joe Biden and Republican House Speaker Kevin McCarthy are nearing an agreement to avoid an imminent debt default, and economic concerns have prompted Biden to cut short his trip to Asia this week. Meanwhile, the dollar, a competing safe haven, maintained its strength throughout the day, making gold less attractive to overseas buyers, and higher interest rates diminish the appeal of non-yielding bullion.
The "FedWatch" tool from CME Group indicates that "markets expect an 82.1% probability that the Federal Reserve will keep interest rates unchanged in June." Regarding other precious metals, silver rose 0.1% in spot trading to $23.76 per ounce after hitting a six-week low in the previous session. Platinum increased by 0.6% to $1,063.71, while palladium rose 0.3% to $1,505.93.
