Gold prices declined as the value of the dollar strengthened and yields increased amid ongoing discussions on the debt-ceiling

Gold prices declined as the value of the dollar strengthened and yields increased amid ongoing discussions on the debt-ceiling

Gold experienced a lower closing price on Thursday as the dollar strengthened and bond yields rose, primarily due to ongoing struggles among US lawmakers to reach an agreement on raising the country's debt ceiling.
The price of gold for August delivery closed down at $1,962.30 per ounce, marking a decrease of $20.80.
This drop in gold prices occurred as discussions between the Biden Administration and House Speaker Kevin McCarthy regarding the debt ceiling continued without reaching a resolution. The lack of an agreement raised concerns about a potential default on the country's debt.
The strengthening of the dollar and the rise in bond yields can be attributed to the deteriorating market sentiment resulting from the unresolved debt-ceiling crisis. This situation has increased the likelihood of the US government facing a cash shortage, leading investors to seek the relative safety of the dollar and diverting their attention away from treasuries.
In early trading on Thursday, the dollar reached a two-month high, with the ICE dollar index rising by 0.38 points to 104.19.
Additionally, bond yields climbed higher as investors shifted their focus away from treasuries amid the ongoing debt talks. The yield on the US two-year note increased by 9.9 basis points to 4.48%, while the yield on the US 10-year note rose by 4.4 basis points to 3.794%.

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