Gold Futures Settle Higher As Dollar, Bond Yields Drop

Gold futures settled higher on Tuesday as the dollar eased and Treasury yields dropped with traders weighing the prospects of a debt ceiling deal.

A cautious undertone prevails in financial markets as the U.S. debt ceiling deal readies for vote.

Later today, the House Rules Committee is scheduled to consider the package and vote on sending it to the full House for a vote expected Wednesday.

U.S. President Joe Biden and House Speaker Kevin McCarthy expressed confidence on Monday that the debt-ceiling deal will pass Congress.

The agreement is likely to face opposition from some Republicans who were seeking bigger spending cuts, potentially prolonging the process of passing the bill.

The dollar index drifted down to 103.88 this morning, but recovered gradually and was last seen hovering around 104.20, down slightly from the previous close.

Gold futures for August ended higher by $14.00 or about 0.7% at $1,977.10 an ounce.

Silver futures for July ended down $0.121 at $23.239 an ounce, while Copper futures for July settled at $3.6630 per pound, down $0.0190 from the previous close.

In U.S. economic news, consumer confidence in the U.S. saw a modest decrease from an upwardly revised level in the month of May, according to a report released by the Conference Board.

The Conference Board said its consumer confidence index edged down to 102.3 in May from an upwardly revised 103.7 in April.

Economists had expected the consumer confidence index to slip to 100.0 from the 101.3 originally reported for the previous month.

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