Gold is rising as economic risks continue

Gold prices rose on Monday as talks to raise the US debt ceiling stalled and fears of an economic slowdown pushed some traders towards the precious metal, a safe-haven asset.

And by 2049 GMT, spot gold rose 0.1 percent to $ 2013.79 an ounce, after falling for three sessions. US gold futures fell 0.1% to $2018.20 an ounce.

Data on Friday revealed that U.S. consumer sentiment fell to a six-month low in May on fears of a recession stemming from the political row over raising the federal government’s debt ceiling.

US President Joe Biden said he expects to meet congressional leaders on Tuesday for talks on a plan to raise the debt ceiling and avert a catastrophic default.

Gold prices tend to rise during times of economic and financial uncertainty, but raising interest rates undermines appetite for the non-interest-bearing metal.

However, gold lost some of its luster due to the rise of the dollar index to its highest level in five weeks against major currencies, which increases the cost of buying gold for holders of other currencies.

As for other currencies, silver in instant transactions increased 0.4 percent to $ 24.01 an ounce. Platinum rose 0.3 percent to $ 1052.44 an ounce. Palladium rose 0.6 percent to $1,518.06 an ounce.