Video: LSE-listed uranium junior Power Metals lands in North America
The company holds a portfolio including precious, base and strategic metal exploration in North America, Africa, Saudi Arabia and Australia.
Gold prices rebounded from early losses on Tuesday, as the dollar pulled back and Treasury yields slid on wider market optimism about the US debt ceiling deal.
Spot gold recorded a gain of 0.9% to $1,961.64 per ounce by 11:30 a.m. EDT, after falling by as much as 0.5% earlier. US gold futures were up 0.8% to $1,978.00 per ounce in New York.
[Click here for an interactive chart of gold prices]
The US dollar meanwhile eased 0.2% from 10-week highs, making bullion cheaper for holders of other currencies. Benchmark 10-year Treasury yields also hit a one-week low.
Along with these positive elements, “you could also see some fund managers squaring up positions at the end of the month, taking profits on their short positions and buying back,” Jim Wyckoff, senior analyst at Kitco Metals, told Reuters.
“In the near term, gold prices are going to trade sideways to lower until we see a fresh catalyst,” he added.
Traders were also assessing Friday’s surprise strong US economic data that bolstered the case for further monetary policy tightening to curb inflation. Prior to the data release, bullion had dropped to its lowest in two months.
While earlier worries on the US debt deal had supported prices, the repricing of the Federal Reserve’s rate hike path was keeping gold pressured, Saxo Bank’s head of commodity strategy Ole Hansen noted.
Traders now see the Fed as more likely to hike rates next month than leave them unchanged, with the debt deal seen easing some of the economic risks that could have kept the central bank on the sidelines.
The deal faces its first test in Congress, with both Democratic President Joe Biden and top congressional Republican Kevin McCarthy expecting enough votes to pass it into law.
(With files from Reuters)
