Global gold prices returned during trading today, Tuesday, to decline, after new signals from Federal officials regarding keeping interest rates high in exchange for the rise of the dollar index, and anticipation of the results of the talks on raising the US debt ceiling.
And by 07:30 am GMT, the price of gold futures contracts for June delivery fell by 0.2% to $ 2015.84 per ounce.
At the same hour of trading today, global oil prices declined, as the price of Brent crude for July delivery fell by 0.08% to $75.2 per barrel.
The price of US Nymex crude for June delivery settled at $71.11 a barrel. At the same time, the US dollar index rose by 0.04%, reaching 102.46 points.
And the dollar’s performance today against gold was supported by what the US Federal Reserve members said in a press conference held yesterday, Monday, that interest rates will remain high as inflation rates continue to increase, but at a slower pace amid expectations of an increase in the possibility of an imminent economic recession.
World investors are awaiting developments regarding discussions of raising the US debt ceiling, as US President Joe Biden is scheduled to hold talks in this regard with Republican politician Kevin McCarthy, Speaker of the House of Representatives.
It is noteworthy that during times of economic and financial uncertainty, gold prices tend to rise, but raising interest rates undermines the appetite for the interest-free metal.
