Gold little changed ahead of EU summit

Gold prices were slightly changed on Thursday trading ahead of awaited EU summit two-day meeting starting today in Brussels.

Spot gold inched up to touch a high of $1383.75 an ounce while it recorded a low of $1378.27.

Gold has gained near to 30% this year, where part of the advance was a result of the mounting debt woes in the euro zone that enhanced demand on the yellow metal as a safe haven asset.

As of 16:00 GMT, European leaders will meet to put come out with permanent rescue methods to tackle potential future sovereign debt crises after the expiry of the 750 billion euro package in 2013.

The last EU finance minter's meeting witnessed a split among members but they agreed to rule out any rescue for Portugal and Spain or to expand the 750 billion-euro package announced in May, while Germany rejected issuing European joint bonds.

Any proposal by any European economy may be subject to refusal from Germany and France that showed dominance recently due to their economic power and their high share in funding any rescue package.

Thus, in the case they did not reach to an agreement, markets may witness some volatility and the euro will probably drop against majors.

On the other hand, President Obama's tax plan is on its way to get approval from the house today. This plan may help the economy on the short run through supporting growth but it will lead to higher debt on the long run.

The US dollar is currently steady after yesterday's gain against a basket of six currencies, as depicted by the dollar index which is currently hovering around $80.13 as $80.00 levels remain crucial for the index.

The previous session, gold shed $16.40 or 1.17% to close at $1380.62, while gold price was setin London at $1388.75 per ounce declining from $1388.25 during the AM fixing.

Recently, we have seen that the relation between gold and dollar became strong where gold is getting direction mainly from dollar movements.

Later in the day, US will release important housing data, yet more focus will be on jobless claims data as the US labor market is still impacted by the crisis.

Initial jobless claims for last week will incline to 425 thousands from 421 thousands.

Among other precious metals, platinum ticked up to $1694.70 from the day's opening at $1692.20, palladium increased to $748.00 from $745.50 and silver rose to $29.07 from $28.97, as of 07:10 GMT.