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Gold prices fell on Monday after a tentative agreement was reached on suspending the US debt ceiling at the weekend, as concerns about prolonged interest rate hikes dampened appetite for the non-interest-bearing metal.
And by 0252 GMT, spot gold fell 0.1 percent to $ 1944.09 an ounce, hovering near its lowest level in two months, which it reached on Friday. There was little change in US gold futures contracts, which recorded $1943.30 an ounce.
Gold was negatively affected as a safe-haven asset after US President Joe Biden said on Sunday that he had finalized a budget agreement with House Speaker Kevin McCarthy that includes suspending the debt ceiling of $31.4 trillion until January 1, 2025, adding that the agreement is ready to be presented to Congress. to vote on it.
In addition, data on Friday revealed that consumer spending in the United States increased more than expected in April and that inflation accelerated.
This report enhanced the chances of raising US interest rates by 25 basis points in June to 65.3 percent and to remain at this level for the rest of the year.
The dollar index rose, which makes gold more expensive for holders of other currencies.
As for other precious currencies, silver fell 0.2 percent to $23.26 an ounce. Platinum rose 0.1 percent to $1,023.83 an ounce. Palladium rose 0.3 percent to $1,428.07 an ounce.
