2023-05-15 01:09:08
Gold prices remained stable on Monday, as the stability of the US dollar offset the support provided by greater economic risks and expectations that the Federal Reserve would pause its cycle of interest rate hikes.
FUNDAMENTALS
* Spot gold remained calm at $2,011.04 an ounce at 0049 GMT. US gold futures fell 0.2% to $2,015.10.
* The dollar has risen, making bullion less affordable for overseas buyers.
* Data on Friday showed U.S. consumer sentiment slumped to a six-month low in May on concerns that political haggling over raising the federal government’s borrowing limit could trigger a recession.
* US President Joe Biden said he plans to meet congressional leaders on Tuesday to discuss a plan to raise the national debt limit and avert a catastrophic default.
* According to the CME’s FedWatch tool, markets estimate an 84.6% chance that the US central bank will keep interest rates at their current level in June.
* European Central Bank interest rate hikes are in their final stretch, ECB Vice President Luis de Guindos said, while warning that higher borrowing costs could put the tests the quality of banks’ assets, even if the indicators remain healthy so far.
* Safe havens tend to appreciate in times of economic or financial uncertainty, but rising interest rates tend to dampen the appeal of yieldless gold.
* Demand for physical gold in India improved slightly last week as domestic prices fell from recent highs, while demand was weak in other Asian hubs with some traders offering discounts in China, large consumer of ingots, to attract buyers.
* Spot silver rose 0.3% to $23.99 an ounce, and platinum rose 0.6% to $1,056.30.
DATA/EVENTS (GMT) 1000 EU Reserve Assets Total April Eurogroup Finance Ministers meet in Brussels
1684114120
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