Gold is to set a new record today
Gold inclined today, extending the gains recorded in the past twelve sessions, affected by the debt crisis in Europe and the United States, which are still forcing negative pressures and raising concerns, awaiting the European leaders' summit on Thursday with hopes to agree on financing Greece in order to avoid default and to prevent the crisis from expanding to other nations in the zone and across Europe.
Spot gold was a little changed today after the opening of $1604.60 per ounce, recording the high of $1608.82 and the low of $1600.93, and is currently trading around $1607.40 per ounce.
Gold advanced in the past period, affected by rising debt-concerns in the euro zone, where fears and jitters dominated the market after the European finance ministers failed to reach an agreement regarding the mechanism of financing Greece, which spread a wave of pessimism in the market especially after the deepening crisis and the possibility of expanding to other countries in the zone. Those factors had supported the shiny metal to trade higher setting new tops, where uncertainty and jitters in the market led investors to hold gold as a safe haven.
On the other hand, the low yielding currency slumped today, cutting the gains recorded yesterday, affected by the warning by moody's to cut the states credit rating, which could lead a huge wave of losses across the board and will have a sharp negative effect on the market, but still the agency is awaiting the lawmakers in U.S. to increase the debt ceiling, but though they are low on time with a decision to be made by August 2 as Obama requested for the decision ahead of that deadline when the US runs out of money to meet its obligations and pay its bills. Gold gained after the low yielding currency lost its appeal as a haven.
Volatility and jitters are expected to control the market, until the European leaders meeting in Brussels on Thursday, and they offer a solution regarding Greece to ensure the financial stability in the zone.
Among other precious metals, silver has also extended the gains recorded in the past six sessions to currently trade around $40.79 per ounce after the opening of $40.51, the metal recorded the high of $40.84 and the low of $40.11 per ounce.
Platinum surged today after the opening of $1767.00 per ounce, recording the high of $1779.00 and the low of $1767.00, and is traded now at $1772.00 per ounce.