FX.co ★ Gold Prices Recover From Two-month Lows

Gold prices recovered from two-month lows on Tuesday as U.S. Treasury yields eased due to the tentative deal on raising the United States debt ceiling over the weekend.

The dollar index traded higher, capping potential gains. Spot gold rose 0.4 percent to $1,954.22 per ounce, while U.S. gold futures were up half a percent at $1,971.95.

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.

Amid much uncertainty over U.S. monetary policy, investors now await U.S. manufacturing readings, the nonfarm payrolls data due later in the week and the upcoming Fed policy meeting in June for directional cues.

Data released earlier in the day showed that a measure of Eurozone economic sentiment fell more than expected in May after four months of general stagnation in sentiment.