Gold slipped as the dollar firmed, cutting some safe- haven flows into bullion from the looming risk of a U.S. debt default as talks entered a critical stretch.
"Overwhelmingly, the debt ceiling headlines are at play....
Gold gained in the previous session "despite headwinds from a rising broad dollar, which reveals notable demand behind the scenes."
Wall Street's main indexes opened lower as the debt ceiling impasse kept investors on edge.
If regional U.S. banking troubles were to subside and agreement reached over the debt ceiling, gold could fall further, said Edward Gardner, commodities economist at Capital Economics.
Persons:
Gold, Joe Biden, Kevin McCarthy, Daniel Ghali, TD Securities . Gold, Edward Gardner, Bullion
Organizations:
Democratic, TD Securities ., Capital Economics
Locations:
Moscow, U.S