Gold prices rose today, Friday, as the dollar fell from a two-month high, but they are on track for a third consecutive weekly loss as traders assess progress in U.S. debt ceiling negotiations and await the next monetary policy move from the Federal Reserve. As of 03:11 GMT, spot gold increased by 0.3% to $1,945.39 per ounce, after hitting its lowest levels since March 22 at $1,936.59. U.S. gold futures also edged up by 0.1% to $1,945.90. However, the yellow metal has declined by 1.6% since the beginning of the week.
Regarding other precious metals, spot silver rose by 0.3% to $22.83, platinum increased by 0.4% to $1,024.63, and palladium gained 0.3% to $1,420.40. Clifford Bennett, chief economist at A.C.Y. Securities, remarked that "the expectations for resolving the debt ceiling crisis are sweeping the market, and there is a general expectation for further monetary tightening from the Federal Reserve, which may put some pressure on gold."
The dollar fell by 0.1% today, although it remained near its highest levels since March 17. Meanwhile, benchmark Treasury yields approached high levels observed in March. On Thursday, it seemed that U.S. President Joe Biden and House Speaker Kevin McCarthy were nearing an agreement to cut spending and raise the government debt ceiling of $31.4 trillion, with little time remaining to prevent the country from defaulting.
