As investors await the votes on the debt deal, gold yesterday closed up by 0.33% at 60198 as the yield on the US 10-year Treasury note dropped to just 3.7%, significantly below the 3.85% seen last week. After passing a significant procedural obstacle, the debt-limit agreement reached by US President Joe Biden and Speaker Kevin McCarthy will soon be put to a vote in the House of Representatives.
According to the agreement’s basic terms, the debt ceiling will be raised for two years, non-defense spending would remain essentially steady for fiscal 2024, and it will rise by 1% that year. Preliminary estimates show that in May 2023, consumer price inflation in Germany decreased to 6.1% from 7.2% the previous month and was below market predictions of 6.5%.
In April 2023, there were 10.10 million job openings in the US, which was unexpectedly higher than the 9.375 million market estimates. This most recent statistic showed a recovery from the previous month’s nearly two-year low of 9.745 million, indicating a continuously tight labor market that would allow the Federal Reserve to raise interest rates further.
As its gold holdings rose by 2% in a single day, the central bank of Iraq announced this week that a broader shift towards gold is underway. Technically, the market is experiencing fresh buying as evidenced by the market’s increase in open interest of 3.37% to close at 15442 while prices are up 200 rupees. Currently, Gold is receiving support at 59921 and a move below could result in a test of the 59643 levels, while a move above could result in a test of 60663 levels.
