Narrow trading for Gold ahead of the European summit

Gold is trading within narrow levels today, after the losses recorded in the past session, where the metal is mainly affected by the volatility and fluctuations that are dominating the market ahead of the European summit and awaiting the critical decision from the U.S. on the debt ceiling.

Spot gold retreated yesterday after setting a new record of $1610.00 per ounce; to currently trade below the $1600 areas around $1591.51 per ounce, after opening at $1588.35, the metal recorded the high of $1592.10 and the low of $1586.70 per ounce.

Volatility and jitters are dominating the market, while pessimism is controlling investors ahead of the Euro area leaders meeting in Brussels tomorrow, as the leaders will discuss and hopefully agree on the mechanism of financing Greece by delivering the new bailout package in order to provide financial stability in the zone and to prevent the contagion from spreading to other European countries as Italy and Spain are the probable next victims.

The decisions and statements will have huge effect on the market, but in the meantime uncertainty is dominant in line with rising concerns; but on the other hand the Greek Finance Minister, Evangelos Venizelos, said a solution is attainable at the summit of European leaders, which eased the pressures slightly and affected the shiny metal to limit the gains today.

On the other hand, the world's largest economy is awaited to come up with a solution and to agree on widening the nation's debt-ceiling in order to avoid a downgrade by rating agencies, which could lead a wave of pessimism in the market and drive heavy losses across the board. An agreement should be taken into consideration before the deadline set on the second of August, which represents the last chance for the U.S. to stand without borrowing extra funds to pay the governmental obligations and commitments. This has increased the fears and concerns in the market, driving gold to gain as a haven, but still not enough to skip the tight levels.

Among other precious metals, silver inclined today, recovering some of the losses recorded in the past session, where the metal surged after the opening of $38.99 per ounce to record the high of $39.34 and the low of $38.85, and is trading now at $39.24 per ounce.

Platinum declined today to reach the low of $1768.00 per ounce, after recording the high of $1779.00, the metal trades now at $1773.00 per ounce.