The most liquid gold futures contract closed this Tuesday, the 23rd, at a slight low, pressured by the strength of the dollar and Treasury interest rates and still accompanying negotiations on the American debt ceiling, after the impasse between the US government and the House of Representatives have not been resolved yesterday.
On Comex, division for metals of the New York Mercantile Exchange (Nymex), gold with delivery scheduled for June closed down 0.14%, at US$ 1,974.50 per troy ounce.
In the view of Craig Erlam of Oanda, recent momentum has been “clearly more bearish” for gold, with the metal now facing new support at $1,960 a troy ounce. According to the analyst, a break below this level could trigger an even bigger bearish development.
However, according to Commerzbank, despite recent falls due to expectations of a more rigid Federal Reserve (Fed) in monetary policy, the debt ceiling impasse has been benefiting the metal. According to analysis, the “increasing risk” of a US default and failed negotiations to end the impasse prevented gold from falling below the $1,950 per troy ounce mark “for now”.
“While the US president and the main opposition negotiator expressed optimism after yesterday’s negotiations, no solution to the conflict has been found and it is only a matter of days before the state runs out of money”, highlights the German bank.
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