HomeIndustriesGold Falls to Two-Month Low as Debt Ceiling Talks Progress

Gold Falls to Two-Month Low as Debt Ceiling Talks Progress

Progress in the U.S. debt ceiling talks saw stock equities rise while gold fell to a two-month low. Renewed optimism surrounding the debt talks saw a reduced number of investors turn to safe havens such as gold in an effort to protect themselves against financial risks.

“It’s a one-two punch for gold. … If a deal is done over the weekend, then that will remove the biggest risk off the table,” Edward Moya, senior market analyst at OANDA observed. Spot gold prices fell 0.87% to $1,939.97 an ounce, with gold futures sinking 1.1% to $1,943.70.

The U.S. dollar moved in the opposite direction, with the dollar index rising to 104.25, thereby showing that the greenback is strengthening against other major currencies. Treasury yields were also up.

U.S. stocks were mixed, with the S&P 500 and Nasdaq Composite gaining 0.88% and 1.71% respectively, while the Dow Jones Industrial Average sunk 0.11% lower. The STOXX 600 Europe index edged 0.3% lower.

Oil prices dropped after Russian Deputy Prime Minister Alexander Novak dismissed the prospect of a further OPEC+ production cut next week. U.S. crude dropped 3.38% to $71.83 a barrel, while Brent crude futures traded 2.7% lower at $76.25 a barrel.

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