PRECIOUS-Gold listless as debt ceiling talks show no progress
Shafaq News/ Gold prices traded in a narrow range on Thursday as investors awaited further developments in the drawn-out debt ceiling negotiations, while a stronger dollar capped advances.
Spot gold XAU= held steady at $1,957.49 per ounce by 0300 GMT. U.S. gold futures GCv1 fell 0.3% to $1,958.60.
The dollar index .DXY held firm close to the previous session's high, keeping a lid on gold prices. USD/
Bullion has been attempting to recover from its previous sell-off, but a stronger dollar and higher U.S. Treasury yields continue to keep the upside in check, which seems to override safe-haven flows around the U.S. debt ceiling situation, said Yeap Jun Rong, a market analyst at IG.
U.S. Treasury Secretary Janet Yellen on Wednesday maintained early June as a debt ceiling default deadline and said she will update Congress shortly about government finances.
Negotiators for Democratic President Joe Biden and top congressional Republican Kevin McCarthy held what both sides called productive talks on Wednesday to try to reach a deal to raise the United States' $31.4 trillion debt ceiling and avoid a catastrophic default.
Investors also took stock of minutesof the May 2-3 Federal Reserve meeting that showed policy makers "generally agreed" last month that the need for further interest rate increases "had become less certain," with several saying the quarter-percentage-point hike they approved might be the last.
However, IG's Jun Rong said gold could see further unwinding from its previous bullish build-up since November 2022.
Investors will also scan U.S. GDP estimates and initial jobless claims due at 1230 GMT for guidance on the economy's health.
Spot silver XAG= fell 0.3% to $23.02 per ounce, palladium edged 0.1% lower to $1,413.64, while platinum XPT= was flat at $1,023.19.