Gold prices steady as US debt ceiling impasse drags on
Investors focused on the U.S. debt ceiling talks, causing gold prices to remain steady in early Asian trade. Despite Biden and the top congressional republican not reaching an agreement, they have pledged to keep talking. St. Louis Fed President James Bullard warned that the policy rate may need to go higher. In contrast, Federal Reserve Bank of Minneapolis President Neel Kashkari cautioned that the worst of the banking sector's stress may not be over. Despite being considered a hedge against economic uncertainties, rising rates hurt demand for gold.
Investors focused on the U.S. debt ceiling talks, causing gold prices to remain steady in early Asian trade. Despite Biden and the top congressional republican not reaching an agreement, they have pledged to keep talking. St. Louis Fed President James Bullard warned that the policy rate may need to go higher. In contrast, Federal Reserve Bank of Minneapolis President Neel Kashkari cautioned that the worst of the banking sector's stress may not be over. Despite being considered a hedge against economic uncertainties, rising rates hurt demand for gold.
