CUR - Gold tumbles below $2000 as investors brace for debt ceiling meeting

2023-05-16 15:30:23 ET

Gold futures settled below $2,000/oz Tuesday for the first time since May 1, marking a fourth loss in five sessions, as traders await a meaningful update on debt ceiling talks expected to be held between President Biden and Speaker of the House Kevin McCarthy.

U.S. retail sales rose more than expected in April, highlighting the continued strength of consumer spending, helping to lift the dollar and weighing on gold.

Front-month Comex gold ( XAUUSD:CUR ) for May delivery closed -1.4% at $1,988.40/oz, while May silver ( XAGUSD:CUR ) finished -1.6% to $23.737/oz, its lowest settlement since March 29.

ETFs: ( NYSEARCA: GLD ), ( NYSEARCA: GDX ), ( GDXJ ), ( IAU ), ( NUGT ), ( PHYS ), ( GLDM ), ( AAAU ), ( SGOL ), ( BAR ), ( OUNZ ), ( FGLD )

"Soft landing hopes are still hanging onto a thread, and that is keeping some investors from going aggressive into safe-havens," Oanda analyst Edward Moya in his daily commentary. "Too many risks remain on the table for investors to go offensive."

"Gold might continue to soften until Wall Street gets a clear sign that market stress is emerging from either debt-ceiling talks, regional banking fears, or sticky inflation weighing on the consumer,' Moya said.

Earlier this month, the front-month Comex gold contract closed at $2,048/oz, its second highest settlement on record .

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