At the opening of the markets in Dubai on Thursday, gold prices fell about two dirhams per gram, pulled lower by a dip in worldwide rates due to anxiety surrounding the US debt ceiling crisis.
According to Dubai Jewelry Group data, the 24K was trading at Dh237.25 per gram on Thursday morning, down from Dh239.0 last night. Among the other precious metal varieties, 22K opened at Dh219.5 per gram, 21K at Dh212.5, and 18K at Dh182.25 per gram.
Gold has been attempting to rebound from its recent sell-off. Still, a stronger dollar and higher US Treasury yields continue to limit the upside, which appears to outweigh safe-haven flows related to the US debt ceiling problem, according to Yeap Jun Rong, an IG market analyst.
On Wednesday, US Treasury Secretary Janet Yellen maintained an early June debt ceiling default deadline and said she would update Congress on government finances shortly.
Negotiators for Democratic President Joe Biden and senior congressional Republican Kevin McCarthy met on Wednesday in what both sides described as fruitful negotiations to achieve an agreement to raise the United States’ $31.4 trillion debt ceiling and prevent a catastrophic default.