Gold prices affected by US debt deal and Fed rate hike speculation.

Gold prices edged lower as the US debt ceiling agreement and expectations of the Federal Reserve raising interest rates weighed on the precious metal. Spot gold fell 0.1% to $1,945.29 per ounce, while US gold futures remained unchanged at $1,944.80. The dollar index was near its two-month peak, making gold more expensive for holders of other currencies. However, solid demand for gold is expected to limit any further decline, with a small margin for a decline to $1,800 in the worst-case scenario.