On Friday, gold prices fell to a 2-month low amid concerns about raising the US debt ceiling and expectations of an interest rate increase. At the opening of trading, the precious metal quotes were located at $1939 per ounce. During the morning, the asset managed to recover to the level of $1952. The current week was the worst for gold since the end of January, with the price falling in parallel with a sharp rise in the dollar, which reached a 2-month high against a basket of currencies. Negotiations between US lawmakers on raising the debt ceiling remain in the focus of the market. It is noted that the debate between Republicans and Democrats has made little progress towards an agreement. The deadline for US debt to default is only a few days away (June 1). Despite this, the dollar is rising as traders have not seen enough factors that could affect the status of the reserve currency. Moreover, the «hawkish» signals from the US Federal Reserve support the dollar, at the same time putting pressure on gold: politicians have signaled that the country's interest rate will rise further to combat stagnant inflation. Signs of strength in the labor market also point to a hawkish outlook for US rates as weekly jobless claims continue to rise. Thus, since a high interest rate increases the opportunity costs of owning non-income assets, such as precious metals, this significantly reduces their attractiveness. Other precious metals also suffered significant losses this week: platinum and silver fell by 4-5%.
RÁPIDOS ENLACES
ForexMart is authorized and regulated in various jurisdictions.
(Reg No.23071, IBC 2015) with a registered office at Shamrock Lodge, Murray Road, Kingstown, Saint Vincent and the Grenadines
Restricted Regions: the United States of America, North Korea, Sudan, Syria and some other regions.
Contáctenos 
