Gold edges down as dollar strengthens

‏Gold prices declined on Tuesday even as dollar strengthened against most major rivals as the US  debt ceiling talks progress.

The Crisis Continues

Optimism is also growing about US debt ceiling talks following fruitful talks between US President Joe Biden and top Congressional Republican leader Kevin McCarthy.

However, both sides  didn't reach a compromise on the debt ceiling crisis, although negotiations are still ongoing and progressing to avoid a catastrophic default.

It's a must that both sides reach a deal to raise the debt ceiling before the end of this week, but sticking points remain.

Mixed Data

Investors await the Federal Reserve's meeting minutes on Wednesday to assess upcoming policy moves by the central banks.

Earlier US data showed new home sales rose 4.1% in April to 683 thousand units from 665 thousand units in March. 

US services PMI rose to 55.1 in May, while analysts expected a drop to 52.6 from 53.6. 

Conversely, US manufacturing PMI fell to 48.5 in May from 50.2 in the previous reading.

The dollar index thus rose 0.3% as of 18:57 GMT to 103.4, with a session-high at 103.6, and a low at 103.1. 

Gold prices stabilized at $1,976.5 an ounce as of 18:58 GMT.