U.S. debt-concerns continue to pressure the shiny metal higher
Gold inclined today, extending the gains recorded in the past sessions, and setting a new historical all-time record, affected by the spread wave of pessimism in the market, which dominated investors and kept the appeal for gold unchanged as a haven, while the world's largest economy, law markers have failed to reach an agreement regarding the steps required by the president to raise the debt-ceiling before August 2.
Spot gold surged today after the opening in the Asian session at $1619.05 per ounce, recording the high of $1625.41 and the low of $1617.90, and is currently trading around $1623.50 per ounce.
Gold inclined yesterday after heavy fluctuations and volatility controlled the metal's movement during the day, and extended the gains today to set a new historical record.
Demand for gold as a safe haven is stable at the current time and is trading near its peak, while all eyes are focused on the world's largest economy, which may loose the triple A's credit rating in case lawmakers fail to find a way to avert the potential debt-crisis.
In the U.S., President, Barrack Obama, has warned lawmakers in the country from a deep economic crisis calling on them to solve the debt-ceiling issue quickly before the deadline on August 2, where by that date the U.S. could start to default its obligations and commitments. The president has also warned lawmakers to use his authority Veto against their plans in case no agreement was found.
Moreover, rating agencies threatened the U.S. from losing the top credit rating, in case lawmakers did not agree on the debt-ceiling, which could lead the country to default. This fear is keeping the metal to the upside and a final deal on the debt limit will surely pressure the metal lower to start the downside correction for the records seen.
Among other precious metals, silver is trading within narrow levels today, and was a little changed since the opening of $40.85 per ounce, to currently trade around $41.02 after recording the high of $41.19 and the low of $40.67 per ounce.
However, platinum inclined today after the opening of $1791.00 per ounce, recording the high of $1812.00 and the low of $1790.00, and is currently trading around $1808.00 per ounce.