Gold slightly higher after streak of losses as U.S. debt-ceiling impasse boosts demand
NEW YORK (May 24) Gold prices recovered a little ground on Wednesday as the impasse over the U.S. debt-ceiling in Washington boosted demand for safe havens following the yellow metal’s worst weekly selloff since February last week.
Price action
- Gold futures for June delivery GC00, 0.33% GCM23, 0.34% rose by $9.80, or 0.5%, to $1,984 per ounce on Comex.
- July silver SI00, -0.23% SIN23, -0.23% declined by 4 cents, or 0.1%, to $23.59 per ounce.
- Palladium for June delivery PAM23, -1.57% fell by $18, or 1.3%, to $1,428 per ounce, while platinum for July delivery PLN23, -1.00% retreated by $12, or 1.1%, to $1,045 per ounce.
- Copper for July delivery HGN23, -1.25% declined by 5 cents, or 1.5%, to $3.60 per pound.
Market drivers
Gold prices have rallied over the past six months as the U.S. dollar has retreated, but gold has reversed some of these gains over the past two weeks, as investors have favored the U.S. dollar as a potential safety play to protect them from any blowback unleashed by the debt-ceiling impasse in Washington. Fortunately for gold bulls, worries about a potential U.S. default appeared to once again benefit gold prices on Wednesday.
“The impasse on U.S. debt ceiling talks has raised the prospect of the world’s largest economy defaulting and kept gold well supported around $1,975 an ounce,” said Rupert Rowling, a market analyst at Kinesis Money, in emailed commentary.
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