Gold prices dip on US debt ceiling deal, Fed rate-hike bets

Gold prices declined by 0.3% and settled at $1,941.45 per ounce as a deal on the U.S. debt ceiling and concerns over the long-term interest rates favoured the US dollar. According to the CME FedWatch tool, the chances of a 25-basis-point increase by the U.S. Federal Reserve in June have mounted to 64.2%, suppressing the yellow metal’s demand. On the other hand, Asian shares and U.S. stock futures soared, while palladium increased by 0.3% to $1,427.39.