Gold prices were a tad higher on Friday after falling for three straight sessions.
Spot gold rose half a percent to $1,967.13 per ounce but was on track for a weekly loss on U.S. debt deal optimism. U.S. gold futures were up half a percent at $1,969.45.
The dollar index pulled back a little, making bullion more affordable for holders of other currencies.
Following a meeting earlier in the week, U.S. lawmakers President Joe Biden as well as House Speaker Kevin McCarthy, R-Calif. expressed optimism that a deal to raise the U.S. debt ceiling will be reached soon.
Biden and House of Representatives Speaker Kevin McCarthy hope to finalize a deal on the debt ceiling after Biden returns from the Group of Seven meeting in Japan on Sunday.
Traders were also reacting to comments from Fed officials on interest rates staying high.
Dallas Federal Reserve Bank President Lorie Logan said current data doesn’t justify pausing rate hikes yet.
St. Louis Fed President James Bullard reaffirmed his support for lifting interest rates further as an “insurance” policy against inflation.
Fed Governor and vice chair nominee Philip Jefferson said that progress on inflation is slowing, but it is still too early for the full impact of the interest rates over the past year to be fully felt.
Fed Chair Jerome Powell and New York Fed’s John Williams are scheduled to speak later today.
European Central Bank (ECB) President Christine Lagarde said earlier today that the central bank will be courageous to take the decisions needed to bring inflation back to 2 percent.
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