Stability of gold amid concern about the negotiations to raise the US debt ceiling

Gold prices were little changed on Wednesday, as investors worried about the protracted negotiations over raising the US debt ceiling, and the rise in the dollar also helped keep prices under control.

Spot gold prices rose 0.1 percent to $1991.35 an ounce by 0455 GMT.

US gold futures witnessed little change, reaching $1995.20 an ounce.

US President Joe Biden and Republican House Speaker Kevin McCarthy are close to reaching an agreement to avert an imminent debt default, and economic concerns prompted Biden to shorten a trip to Asia this week.

Bullion fell below $2,000 on Tuesday after US retail sales data and hawkish comments from Federal Reserve officials increased expectations of a delay in interest rate cuts.

Meanwhile, the dollar, a rival safe haven, maintained its strength during the day on Wednesday, making gold less attractive to overseas buyers. Higher interest rates also reduce the attractiveness of non-yielding bullion.

CME Group’s Videowatch service indicates that markets expect by 82.1 percent that the US central bank will keep interest rates unchanged in June.

As for other precious metals, spot silver rose 0.1 percent to $23.76 an ounce, after hitting a six-week low in the previous session.

Platinum also rose 0.6% to $1,063.71, and palladium rose 0.3% to $1,505.93.