Gold sets a new record during the Asian session

Gold surged today after the opening in the Asian session, extending the gains recorded in the past session, where the metal is mainly affected by the current situation in the U.S. regarding the debt ceiling issue in addition to the Greek credit rating downgrade.

Spot gold jumped today after the opening of $1608.70 per ounce, to record a new historical top at $1623.25. The metal recorded the low of $1603.25 and is currently trading around $1617.11 per ounce.

The shiny metal extended the upside journey after the volatility seen in the past week to set a new historical record amid the increased demand for the metal as a safe haven in light of the debt ceiling issue in the U.S. which caused the metal to trade higher.

In the U.S., lawmakers had failed again to comeout withan agreement in to raise the country's debt ceiling which may expose the world's largest economy to face default next week in the case that debt ceiling was kept unchanged at $14.3 trillion.

Moreover, Standard & Poor's, Moody's and Fitch rating agencies demanded the nation to solve the debt ceiling issue quickly before next week, or thetop credit rating in the world would be downgraded for the first time due to rising concerns that the country may default indeed.

In Europe, Moody's rating agency has cut Greece's credit rating by three steps to Ca from Caa1, after the European leaders have come to an agreement regarding Greece and approved the second bailout package for the nation.

European leaders have also extended the maturity of the Greek bonds and lowered the interest rate associated with the debt, in addition to the bonds buyback. These facts were considered as a selective default and they were believed to affect the private investors and imply substantial economic losses for private creditors as Moody's has said. Accordingly, rating agencies downgraded Greece's credit rating further through junkwhich supported the metal to trade higher after concerns spread in the market and pessimism has controlled investors.

Among other precious metals, silver also inclined after the opening of $40.29 per ounce, recording the high of $40.72 and the low of $40.06, and is currently trading around $40.57an ounce.

Platinum also surged, after the opening of $1798.00 per ounce, recording a high of $1801.00 and a low of $1795.00, and is currently trading around $1801.00 per ounce.