Gold still to extend the gains, setting a new record
Gold inclined today, continuing the two-week upside journey, extending the gains recorded in the past two weeks, affected by uncertainty which is controlling the market, in addition to the rising debt-concerns in Europe and the debt-ceiling debate in the U.S.
Spot gold surged today after the opening of $1593.20 per ounce, recording the high of $1598.17 and the low of $1591.43, and is currently trading around $1597.25 per ounce.
The metal has been inclining for two weeks with the rising debt concerns in the Euro zone and the credit rating cuts, where rating agencies has downgraded Greece's credit rating to lowest in the world in addition to Ireland and Portugal to junk. Moreover, the finance ministers did not reach an agreement in regards to the situation in Greece, which needs to be financed in order to avoid default, while the IMF said it is not ready to discuss any new bailout packages until further steps toward austerity is taken by the Greek government. All these factors have affected the shiny metal, forcing upside pressures after the demand increased for gold as a safe-haven due to debt-concerns and uncertainty dominating the market.
The Euro area leaders are to meet soon on July 21 to discuss financial stability and surely Greece is on the top of the list. Volatility and mixed trading will be dominant in the market until a decision is made regarding the new bailout for Greece, which will ease fears and concerns and could support investors' appetite for risk.
On the other hand, the world's largest economy is threatened by rating agencies to face credit rating cuts unless steps are made toward solving the debt ceiling debate. Where decision makers failed to break the deadlock over raising the debt limit, the United States is running low on time, while a decision has to be made before the deadline on August 2. This has also worsened and deepened fears and jitters in the market, driving investors to demand gold among other investments as a safe haven.
Among other precious metals, Silver also advanced today after the opening of $39.24 per ounce, recording the high of $40.02 and the low of $39.23, and is currently trading around $39.81 per ounce.
Platinum was a little changed today after the opening of $1759.00 per ounce, to record the high of $1765.00 and the low of $1755.00 and is currently trading around $1763.00 per ounce.