2023-05-22 11:29:00
© Archyde.com. FILE PHOTO: Bars of 99.99 percent pure gold are placed in a working room at the Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia. January 31, 2023. REUTERS/Alexander Manzyuk
Por Seher Dareen
(Archyde.com) – The price of bullion fell slightly on Monday as hawkish comments from a pair of Federal Reserve officials weighed on bullion and markets sought more clarity around the debt ceiling negotiations for USA.
* * By 1705 GMT, spot gold was down 0.1% at $1,974.10 an ounce, while US gold futures were down 0.3% at $1,976.40.
* President Joe Biden and House Republican Leader Kevin McCarthy will meet later in the day to discuss the debt ceiling, which will be closely watched to see if a resolution is reached following the Negotiations broke down on Friday.
* Although fears of a failure to reach a deal by June 1 might prompt some flight into buying gold, the market appears to suspect a financial crisis can be avoided, said Jim Wyckoff, a senior analyst at Kitco Metals.
* Markets now await the release of the minutes of the Fed’s latest Federal Open Market Committee meeting on Wednesday. According to the CME’s FedWatch tool, markets are pricing in a 68.6% chance that rates will hold. stable next month, but at 31.4% the probability of a rise of 25 basis points.
* Minneapolis Fed Chairman Neel Kashkari told CNBC that “we may have to go beyond 6%” to get inflation back to the Fed’s 2% target, while his counterpart in San Luis, James Bullard, said that it might be necessary to raise the official interest rate.
* Gold tends to lose its appeal in a high rate environment.
* In other precious metals, spot prices fell 0.5% to $23.70 an ounce; he gained 0.4% to $1,066.93; and the fell 1.5% to $1,489.66.
(Edited in Spanish by Carlos Serrano and Javier Leira)
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