Gold is falling amid the strength of dollar

Gold prices fell on Tuesday, affected by the strength of the dollar, while investors watched the continued attempts to reach an agreement to end the debt ceiling crisis in the United States.

Spot gold fell 0.4 percent to $1,962.06 an ounce by 0306 GMT. US gold futures also fell 0.6 percent to $1,965.70.

A stronger dollar makes gold less attractive to overseas buyers.

US President Joe Biden and House Speaker Kevin McCarthy were unable to reach an agreement on Monday on how to raise the federal government’s $31.4 trillion debt ceiling, just 10 days before a possible default could throw the economy into chaos. But they vowed to continue the talks.

As for other precious metals, spot silver fell 0.5 percent to $23.55 an ounce, palladium fell 0.4 percent to $1485.59, while platinum settled at $1066.59.