Gold at `lowest` rate in international market

The price of gold has decreased in the international market. According to information from Kitco News and other organizations that monitor the gold market, gold was sold at $1,964 per ounce (one ounce = 28.35 grams) on the global market on Friday.

Before this, the last price on May 2 was sold at a price of $2,000 per ounce. Since then the price of this precious metal has increased. At the beginning of this week, the selling price of gold per ounce was 2,000 dollars. Accordingly, the price of gold has decreased by 36 dollars per ounce since Wednesday.

As such, the current selling price of gold is the lowest it has been in more than two weeks.

According to market analysts, the current decline in gold prices is directly related to the US central government debt. Han Tan, the chief analyst of the US gold market analysis company Exinity, told Reuters, "The burden of outstanding debt on the US government is currently pressing; Everyone is hoping that the central government will find a way out before the deadline. This optimism has also been reflected in the gold market.

After Joe Biden became the president of the United States in 2020, the country's central government borrowed 31.4 trillion dollars from the central bank to run the government. The deadline for repayment of that loan is June 1.

If the central government wants to extend this period of debt repayment, in that case, the majority of the Republican Party in the lower house of the country's parliament (House of Representatives) and the lawmakers of the Democratic Party sitting in the central government should reach a consensus.

Joe Biden recently met with Republican MP and Speaker of the House of Representatives Kevin McCarthy to extend the loan repayment period. In the meeting, McCarthy said, the Republican lawmakers agree to extend the debt repayment period, but the Republican lawmakers do not support the conditions that the Democratic Party MPs have given for spending cuts.

Meanwhile, US Treasury Secretary Janet Yellen warned the central government on Wednesday that if the central government fails to repay or extend the repayment period, the US economy will be under great pressure.

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