Gold Prices Slide as US Debt Ceiling Discussions Weigh on Market Sentiment.
Gold prices faced downward pressure in yesterday’s trading session, settling down by -0.23% at 60241, as market participants maintained a cautious stance amid ongoing discussions regarding the US debt ceiling.
The lingering uncertainty surrounding the issue prompted investors to adopt a wait-and-see approach. Treasury Secretary Janet Yellen has been vocal about the potential consequences of failing to reach a deal to extend the debt ceiling, warning that the US could default on its obligations as early as June 1.
In light of these concerns, President Joe Biden and House Speaker Kevin McCarthy are scheduled to hold a meeting later today to address the debt limit.
While the bullion market in China, a leading hub for gold trading, experienced subdued activity, a decline in local gold prices from record highs enticed buyers back into the Indian market. Consequently, dealers were compelled to reduce discounts to a 10-week low. Indian merchants, offering discounts of up to $5 per ounce off official domestic rates, saw a decrease from the $11 reduction observed in the previous week.
In April, India’s gold imports fell by 45% compared to the previous year, amounting to 16 tonnes, primarily due to the rise in domestic prices, which curbed demand during a significant holiday period. In China, premiums of $2 to $4 were imposed, while Japanese dealers either matched global prices or charged a $0.50 premium. Singapore saw premiums ranging from $0.50 to $2.
Turkey’s jewellery industry is a major contributor to the country’s economy, and the sector is aiming to increase its exports to over $10 billion in 2023, despite the impact of February’s earthquakes.
The Turkish Jewellery Exporters’ Union reported that the industry has seen significant growth in the past decade, accounting for 1.5% of all Turkish exports in 2022, with over 300 tonnes of gold made into sophisticated pieces of jewellery each year. Turkey is the second-largest exporter of gold jewellery after Italy, and the industry provides more than 250,000 jobs.
Despite the challenges of recent events, the Turkish jewellery industry is expected to continue its robust growth, contributing to Turkey’s economy and the global jewellery market.