Gold prices fell on May 22 morning, as the markets continue to assess the prospects associated with the monetary policy of the US Federal Reserve System (FRS) and the increase in the country’s public debt, Report informs.
The price of June gold futures on the New York Comex exchange fell by $4.25 (0.21%) to $1,977.35 per troy ounce. July silver futures fell 0.79% to $23.87 an ounce.
Discount rate of the Fed remains one of the main factors for gold prices. Investors hope to get more clues about the regulator’s plans for the rate from the minutes of the May meeting, the document will be published on May 24.
Signals from the Fed affect the value of the dollar, to which gold is sensitive. Bidders are also watching the situation with the increase in the US public debt. Speaker of the House Kevin McCarthy said earlier that he would meet with President Joe Biden on May 22 to negotiate a higher debt ceiling. The Congressional Budget Office calculated that if the Treasury keeps afloat until June 15, quarterly tax receipts would delay the default until at least the end of July.