‎Gold widens losses after hitting biggest weekly loss since February

‎Gold widens losses after hitting biggest weekly loss since February

Gold prices extended their downtrend today, May 22, after posting their biggest weekly loss since early February, as investors increasingly heed the US debt ceiling negotiations and Federal Reserve officials’ remarks.

Bullion for June delivery plunged by 0.20% to $1,977.70 an ounce at 10:41 am Makkah.

Further, silver futures for July delivery ticked 0.70% lower to $23.89 an ounce.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, held ground at 103.25 points, after touching its highest level in several weeks.

The yellow metal’s prices shed 1.5% during last week's trading, marking the worst weekly loss since Feb. 3. In addition, silver recorded losses of 0.4% over the course of the week.

Last week, Fed Chairman Jerome Powell said the US central bank would not let go in its battle to rein in soaring inflation rates.

Markets are looking forward to the resumption of Republicans' and Democrats' talks on the US debt ceiling after they failed to reach an agreement over the weekend. This is as the June 1 I

In a research note, UBS projected the continuation of strong demand from central banks for gold during the current year, after they bought a record 1,078 tons in 2022.