The performance of gold remained stagnant as a result of increasing bond yields, driven by the demand for safe assets triggered by the US debt ceiling crisis.

Despite experiencing a 0.9 percent decline on Wednesday, gold remained flat due to a balancing effect between the demand for safe assets resulting from the debt ceiling crisis and the upward trend in bond yields.

Fitch Ratings, while maintaining a negative watch on the US credit rating, expressed their expectation that a resolution would be reached before the government faces a cash shortage.

Kevin McCarthy, the Speaker of the House of Representatives, voiced his optimism about an impending agreement between the two sides to avert a default by the United States.

While public debt sales in the US pushed 10-year bond yields to levels not seen since the banking crisis in March, this development contributed to the decline of the precious metal in tandem with the strengthening of the dollar.