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ShreeMetalPrices: Gold hovers to two-month low afters US debt ceiling talks progress


Gold fell to its lowest level in 2 months on friday as confidence around the United States debt ceiling talks reduced demand for safe-haven assets, while strong economic data continues to fuel expectations of another rate increase.

By 9:00AM IST, spot gold was 1,943.10 dollar per ounce and fell below the 1,950 dollar mark for the 1st time since March. The price of US gold futures fell 1.1 percent to 1,944.99 dollar per ounce.

Negotiators from the White House and the Republican Party made some progress during late-night discussions about lifting the debt ceiling, according to senior congressional Republican Kevin McCarthy.

It’s a 1-2 gold punch, The biggest risk will be eliminated if a deal is completed over the weekend, according to Shree Metal Prices

After revised estimates revealed that United States gross domestic product expanded at a 1.3 percent annualised rate last quarter, higher from the 1.1 percent pace anticipated the previous month, gold prices continued to decline from earlier this week.

The case for perhaps delivering another rate increase is gaining traction, according to a pretty excellent round of economic statistics, which also implies that the economy is still displaying tremendous resilience. Moya said.

Traders were watching the Friday release of the Fed-favored inflation indicator, the core personal use expenditures index.

According to the CME FedWatch tool, markets are currently pricing in a 41 percent chance of a 25 bps raise in June and cuts no earlier than Sept.

Benchmark Treasury yields were close to 2-month peaks, while the United States currency rose to its highest level since mid-March, making gold lower appealing to purchasers from outside.

According to Shree Metal Prices, gold was “really seeing things through the lens of the dollar.