Gold steadied after Friday's decline, as a move toward risk-on assets after the US resolved its debt-default saga quelled appetite for the precious metal.
Traders on Monday were concentrating on the surge in equities at the expense of bullion, which has slipped more than 5% since approaching a record high a month go. After hailing the budget agreement that averted the first-ever US debt default, President Joe Biden said the world would not be shaken by doubts about the creditworthiness of the top economy.
On Friday, signs of labor-market slackening in May despite a pickup in hiring bolstered the argument from Federal Reserve Chair Jerome Powell and other officials that they should take more time to assess incoming data and the evolving outlook, lessening the likelihood of further monetary tightening this month. Higher rates are generally negative for non-interest-bearing bullion.
Spot gold was little changed at $1,947.10 an ounce as of 9:05 a.m. in Singapore, after closing Friday down 1.5%. The Bloomberg Dollar Spot Index edged up. Silver and palladium fell, while platinum was flat.
Source : Bloomberg
