Gold drops on discussions of US national debt

Gold is declining on Tuesday morning as eyes on financial markets are watching the peripethies of discussing the US national debt ceiling.

Report informs, citing trading data, that the June futures for gold dropped by $13.85 (0.7%) at New York's Comex, to $1,963.35 per troy ounce. The July futures for silver dropped 0.93% to $23.64 per ounce.

Increasing the US national debt ceiling remains among the key topics on agenda

Speaker of the US House of Representatives Kevin McCarthy said after a meeting with US President Joe Biden that he was confident in the success of negotiations on this topic. At the same time, McCarthy noted that Biden's inaction could lead to a US default, and although there is still time until June 1, lawmakers should have no more than three days to study the final agreement.

Traditionally, gold has been a safe-haven asset, and signs of a resolution to this situation are making it less popular with investors.

Markets are also waiting on Wednesday for the publication of the minutes of the last meeting of the US Federal Reserve (Fed). The document may contain clues about the future plans of the regulator. And on Thursday, an interim estimate of the quarterly dynamics of US GDP will be published. According to experts, the country's Department of Commerce will keep the estimate of the growth of the American economy at the level of 1.1% in terms of the year.