Gold trading sideways near the record peak
Gold is still limited in its movement and is trading within narrow levels and also fluctuating heavily amid the U.S. debt ceiling debate. The vote on the debt-ceiling proposal was expected yesterday, yet it was delayed for late today, which extended the jitters and pessimism that control the market at the moment, while investors are worry from a U.S. default and also a credit rating cut.
The shiny metal is stable near its peak but was a little changed; where gold declined today after the opening in the Asian session at $1615.80 per ounce, the metal also recorded the high of $1618.18 and the low of $1610.55 and is currently hovering around $1612.60 per ounce.
The confidence remains weak in the market, yet gold's appeal as a safe haven fell a bit after the dollar started to strengthen, where the low yielding currency pushed the shiny metal to be an alternative investment, and forced negative pressures on commodities and metals in general to trade lower as we can see that silver declined sharply today alongside with crude oil and other commodities.
The dollar index is currently trading around 74.30, after the opening of 74.10, recording the high of 74.39 and the low of 74.01.
Moreover, the U.S. debt ceiling critical vote is awaited today, which supported the metal to hold on the gains recorded in the past sessions during the month, where the shiny metal opened this month at $1500 per ounce and advanced sharply to set a new historical record at $1628.57, affected by the European debt-crisis in addition to the debt-ceiling crisis in the U.S., which forced negative pressures and led the confidence to drop, spreading pessimism and concerns widely after the heavy losses seen across the board during the July.
The U.S. president, Barrack Obama, alongside with Democrats have already refused John Boehner proposal to raise the debt ceiling in stages, where the president requested lawmakers to agree on raising the debt ceiling immediately and in one step, and also threatened to use his authority veto against any law made by the republicans, who are demanding to raise the debt ceiling by two steps.
Obama called on U.S. lawmakers, after he warned from a deep financial crisis to reach an agreement regarding the debt-ceiling before the deadline on August 2, where the treasury reported that starting from that date it will not be able to cover its expense and might have to default on its obligations and commitments, while rating agencies threatened the world's largest economy and the top credit rating to fact a downgrade in case a failure to raise the debt ceiling should cause a default.
Among other precious metals, silver also declined today after the opening of $39.73 per ounce, recording the high of $39.81 and the low of $39.30 and is currently trading around $39.49 per ounce.
Platinum also slumped today after the opening of $1796.00, recording the high of $1796.00 and the low of $1789.00 and is currently trading around $1791.00 per ounce.