Gold continues the narrow trading on Thursday
Gold is trading within narrow levels since the Asian session opening, after recording losses in the previous session, where yesterday gold achieved new historical recorded at $1628.57 per ounce but then reversed to the downside to settle bearishly.
Spot gold surged today after the opening in the Asian session at $1613.37 per ounce, recording the high of $1617.21 and the low of $1612.05, and is currently trading around $1615.15 per ounce.
The precious metal is affected by the U.S. debt ceiling debate, which increased demand for gold as a safe haven; however, investors started to perceive that lawmakers in the U.S. will not allow the country to default due to high risks associated with this default, where its effect will not only include the U.S. but also the global economy itself, and could trigger another deep financial crisis worldwide.
Moreover, the U.S. lawmakers are to meet today to vote on john Boehner's proposal, which is a deficit-cutting plan and a plan to raise the debt-limit, while the U.S. President, Barrack Obama, threatened to use his authority against any plan to restrict the debt ceiling increase; Republicans are suggesting to raise the debt ceiling in two stages, while Democrats are attempting to pass their one step raise in the debt ceiling by $2.7 trillions supported by the U.S. president.
U.S. Lawmakers are facing a difficult decision before the deadline on August 2, where the U.S. treasury will not be able to manage its expenditures and may default after running low on funds, while the treasury needs quick liquidity to pay the obligations and commitments starting from the mentioned deadline.
Volatility and heavy fluctuations are dominating the market in the current time, while pessimism is controlling investors and metals are trading near their opening levels and trading within limited range since the opening awaiting the critical decision form the U.S. in order to spread a wave of relief in the market and then we could witness precious metals reversing down after the long upside journey.
Among other precious metals, silver is also trading narrowly today, after the opening of $40.22 per ounce, to currently trade around $40.32 after recording the high of $40.46 and the low of $40.11 per ounce.
Platinum declined today after the opening of $1814.00 per ounce, recording the high of $1818.00 and the low of $1797.00, and is currently trading around $1797.00 per ounce.