Gold prices close in green on weaker US dollar, bond yields

Gold prices ended in the green today, May 30, following a pullback in the US dollar and Treasury bond yields, as investors assessed the course of America’s debt ceiling upheaval.

The US House Rules Committee will meet later today to discuss the debt ceiling bill, which needs to pass a narrowly divided Congress before June 5, when the US Treasury says it would run short of cash to cover its obligations.

President Joe Biden and Republican House Speaker Kevin McCarthy signed off, on May 28, on an agreement to temporarily suspend the debt ceiling and cap some federal spending.

The two voiced confidence that their tentative deal will pass Congress and reach Biden’s desk for signature, averting a historic US default.

Optimism about a solution to the US debt cap drama boosted investors sentiment, spurring their risk appetite and trimming the US dollar's gains after rising to its highest level in more than two months.

The Conference Board's consumer confidence index slipped to 102.30 in May, as consumers expected inflation over the next 12 months to average 6.1%.

Financial markets are pricing in more than a 60% chance of the US central bank raising its policy rate by another 25 basis points at its June 13-14 meeting, according to the CME’s FedWatch Tool.

In terms of trading, bullion for August delivery climbed 0.70%, or $14, to close at $1,977.10 an ounce, after touching the $1,981.90 level in early trading.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, stabilized at 104.20 points at 08:31 pm Makkah time, after hitting an intraday low of 103.88 points.