Gold Heading for First Monthly Loss in Three as Dollar Dominates

Date: 31 May 2023 - 23:09

News ID: ۱۱۵۶۸۶

NEW YORK (Reuters) - Gold prices steadied on Wednesday yet was headed for its first monthly decline in three as the U.S. dollar climbed on expectations the Federal Reserve would keep interest rates higher for longer than previously thought.
Spot gold was largely unchanged at $1,958.69 per ounce by 1123 GMT. It has lost nearly 1.6% so far this month and $120 from its near-record highs earlier in May.
U.S. gold futures held steady at $1,976.30.
“The strong U.S. dollar is likely to remain a headwind for gold prices. With the banking crisis on the back burner and the debt ceiling debacle all but resolved, the focus turns back to the inflation fight,” Ilya Spivak, head of global macro at Tastylive, said.
Global shares fell ahead of a vote in Washington on the U.S. debt ceiling, while the U.S. dollar hit a more than two-month high after data showed China’s recovery is stalling.
“Gold will probably remain at its current level over the next few days as safe haven demand related to uncertainty about the debt ceiling persists,” said Edward Gardner, commodities economist at Capital Economics.
In the near term, gold faces headwinds from a stronger dollar and expectations of the Fed raising rates and holding them at a high, Gardner added.