Hovering At Six-Week Lows

Gold is at 1939.44 (-0.2%) in the Asia-Pacific session, after closing 1943.19 on Monday.

• Gold remained close to its lowest level since mid-March as investors assessed the likelihood of the US debt-ceiling deal being approved and its potential impact on government expenditure.
• President Biden and House Speaker McCarthy expressed confidence that the bipartisan agreement would pass through Congress, with voting anticipated to take place as early as Wednesday.
• Bullion is also confronted with the prospect of additional interest rate hikes from the Federal Reserve. The yield on 2-year tsys has experienced a significant increase in recent weeks, indicating that persistent inflationary pressures may prevent the Federal Reserve from halting its tightening measures.
• In addition, the US dollar remains strong, hovering around a six-week high, further creating headwinds for the precious metal.