US debt ceiling bill pushes gold prices back to USD 1,948

Gold prices fell back in last week’s trading to close at USD 1,948 an ounce, following US senate debt ceiling bill.

A report issued by local Dar Al-Sabaek mentioned that the recently signed bill reinvigorated investors’ sense of risk-taking as it lessened fears of US falling back on debt payments; causing the US dollar to regain its strength.

US treasury bonds yield also directly increased following the debt ceiling bill, this along with American data reflecting strong labor market, effectively decreased gold prices 1.3 percent.

As long as American data shows continuous improvements, investors will continue to stray away from the precious metal, indicated the report, adding that gold prices would rejuvenate should the US put stop to interest rate increase policy.

Gold August futures retreated by 26 dollars an ounce, whereas US dollar indicator against other main currencies increased 0.5 percent to 104 points.

On a local scale, the report stated that the price of a 24-carat gram reached KD 19.48, whereas the 21-carat gram reached KD 17.

Source: Kuwait News Agency