Gold prices were steady on Thursday as investors remained on edge over debt limit negotiations and minutes from the U.S. Federal Reserve’s most recent meeting suggested a possible pause in the rate-hike campaign in June.
Spot gold was unchanged at $1,957.69 per ounce. At $1,960.10, U.S. gold futures were down 0.2%.
The dollar index remained steady just below the high of the previous session. Bullion is less alluring to foreign buyers when the currency is stronger.
On Wednesday, U.S. Treasury Secretary Janet Yellen reiterated early June as the deadline for the debt ceiling default and announced she will soon provide Congress with an update on the state of the nation’s finances.
According to the minutes of the May 2-3 meeting, which were posted on Wednesday, Fed members ‘generally agreed’ last month that the need for further interest rate hikes ‘had become less certain,’ with suggesting that the quarter-percentage-point raise they approved would be the last.
Fed Governor Christopher Waller stated that while skipping a rate hike at the meeting next month may be possible, a halt to the campaign of rate increases is not anticipated.
According to CME’s FedWatch Tool, the probability of another 25-basis-point increase at the Fed’s subsequent meeting is presently 33.6%.
On Wednesday, leading congressional Republican Kevin McCarthy and Democratic President Joe Biden negotiators attempted to negotiate an agreement to raise the United States’ $31.4 trillion debt ceiling in order to prevent a disastrous default.
According to Reuters surveys of market strategists, global stock indices will end this year higher than where they began, but most are expected to remain in ranges in the upcoming months even as central banks get closer to the point when they can no longer raise interest rates.
Platinum increased 0.1% to $1,024.26 while spot silver declined by 0.3% to $23.03 per ounce. Palladium remains constant at $1,416.19.
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