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Gold up after three sessions of losses
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U.S. dollar hits five-week high
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Gold might end bounce around resistance at $2,031 -
technicals
(Adds details, updates prices)
By Kavya Guduru
May 15 (Reuters) - Gold prices rose on Monday as the
U.S. debt ceiling stalemate and concerns over an economic
slowdown steered some traders towards the safe-haven metal.
Spot gold was up 0.4% at $22,018.76 per ounce by 0727
GMT, after falling for three sessions. U.S. gold futures rose 0.2% to $2,023.60.
Recent downside surprises in U.S. economic data have lifted
the chances of a recession over the next 12 months, with
safe-haven flows providing somewhat of a cushion for gold, said
Yeap Jun Rong, a market analyst at IG.
Data on Friday showed U.S. consumer sentiment slumped to a
six-month low in May on worries that political haggling over
raising the federal government's borrowing cap could trigger a
recession.
U.S. President Joe Biden said he expects to meet with
congressional leaders on Tuesday for talks on a plan to raise
the nation's debt limit and avoid a catastrophic default.
Bullion tends to gain during times of economic or financial uncertainty, but higher interest rates dim non-yielding gold's appeal. "Gold held onto recent gains, with the precious metal trading just below its record high as the market assesses the Fed's next move," ANZ said in a note.
Markets are pricing in an 83.4% chance of the U.S. central bank holding rates at the current level in June, according to the CME FedWatch tool. But taking some shine off gold, rival safe-haven dollar hit a five-week high against major peers and made bullion less affordable for buyers holding other currencies. Gold might end its bounce around a resistance at $2,031, before resuming its fall towards $2,003, according to Reuters technical analyst Wang Tao. Elsewhere, spot silver rose 0.8% to $24.11 per ounce and palladium gained 0.8% to $1,521.08. Platinum advanced 1.1% to $1,061.27. A global deficit of platinum in 2023 will be 77% larger than previously expected due to supply constraints and higher demand, the World Platinum Investment Council (WPIC) said in a quarterly report.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ xau ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Kavya Guduru in Bengaluru; Editing by Sherry Jacob-Phillips, Sohini Goswami and Subhranshu Sahu)
