Gold prices rise amid weakening dollar

Gold prices rose on May 26 morning, Report informs referring to the auction data.

The price of the precious metal is supported by the weakening of the dollar and corrective dynamics, while the price of gold may show a decrease over the week.

The price of June gold futures on the New York Comex exchange rose by $4.05 (0.21%) to $1,947.75 per troy ounce. July silver futures are up 0.56% to $23.038 an ounce.

The dollar index (the exchange rate against a basket of currencies of six US trading partners) falls by 0.17% to 104.07 points. The weakening dollar makes gold more affordable to buy in other currencies.

At the same time, since the beginning of the week, gold may show a decrease in value by 1.7%, since the previous four trading sessions, gold has been cheaper - this may be the third week in a row that the precious metal has fallen in price.

An important event of the week is also the topic of negotiations on the ceiling of the US national debt. On May 25, President Joe Biden said that there would be no default in the country, and negotiations with Congress are going around budget parameters. The Treasury Department warns in letters to Congress that as early as June 1, the US will likely be unable to fully service obligations if lawmakers do not authorize an increase in borrowing limits by that time.