Gold prices maintained their downtrend at settlement today, May 23, as the US debt ceiling negotiations continued to stalemate.
According to CNBC, JPMorgan & Chase CEO Jamie Dimon said banks — especially smaller ones — should brace for the risk of benchmark interest rates rising even higher than the current levels, possibly up to 6-7%.
Elsewhere, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said earlier today that she hoped the world economy would not have to wait until the last minute for a solution to the US debt ceiling impasse.
Earlier this month, Treasury Secretary Janet Yellen warned lawmakers that the federal government could run short of money to pay its bills as early as June 1 unless the debt ceiling is raised soon.
Meanwhile, S&P Global's flash US composite Purchasing Managers' Index (PMI), which captures activity in both the services and manufacturing sectors, came in at 54.5 in May, up from 53.4 in April and better than the 53.0 that had been projected by economists, an indication that US firms saw “a solid upturn in business activity” this month.
Seeking more clarity on the path of monetary policy during the coming period, markets are awaiting tomorrow, May 24, the release of the minutes of the last Federal Reserve meeting, which was held earlier this month and saw interest rates raised by 25 basis points.
Bullion for June delivery shed 0.10%, or $2.70, to close at $1,974.50 an ounce, trimming losses after hitting $1,955.80 in early trading.
Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, nudged up 0.30% to hit 103.52 points at 08:30 pm Makkah time.
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