Gold prices declined on Monday after a preliminary agreement was reached regarding the suspension of the US debt ceiling over the weekend, as concerns over the continuation of interest rate hikes for a longer period dampened the appetite for the non-yielding precious metal.
As of 02:52 GMT, gold fell in spot trading by 0.1% to $1944.09 per ounce, hovering near a two-month low reached on Friday. There was little change in US gold futures, which were recorded at $1943.30 per ounce.
Regarding other precious metals, silver declined by 0.2% to $23.26 per ounce, while platinum increased by 0.1% to $1023.83 per ounce. Palladium rose by 0.3% to $1428.07 per ounce.
Gold was negatively impacted as a safe-haven asset after US President Joe Biden said on Sunday that he finalized a budget agreement with House Speaker Kevin McCarthy that includes suspending the debt ceiling of $31.4 trillion until January 1, 2025.
Additionally, data released on Friday revealed that consumer spending in the United States increased more than expected in April and that inflation accelerated.
This report boosted the chances of a 25 basis point interest rate hike in June to 65.3%, with expectations that this level could be maintained for the remainder of the year.
The dollar index rose, making gold more expensive for holders of other currencies.
