Gold surges amid downbeat growth outlook
Gold inclined today, extending the gains recorded in the past session amid the downbeat growth outlook in China, U.S and Europe, where data released yesterday showed slowing pace of manufacturing sector growth, awaiting the final vote from the world's largest economy regarding the debt ceiling issue, after the house approved the plan and reached to an agreement to raise the current debt-ceiling of $14.3 trillion.
Spot gold is trading near its historical record set at $1632.45, after the opening of $1619.30 per ounce, where the metal recorded the high of $1629.50 and the low of $1616.17 and is currently hovering around $1628.15 per ounce.
The appeal for the shiny metal as a safe haven rose after the heavy data released yesterday, which showed that global growth is loosing momentum, where the critical purchasing managers' index showed a slowing pace of growth in the manufacturing sector in Germany, U.K and China during July, while the ISM Manufacturing index showed slower pace of growth in the U.S, awaiting to see the performance of the service sector during the coming period.
The confidence remains fragile, while jitters and fears are dominating the market due to the current situation in the U.S., where heavy fluctuations and volatility is seen while the market is waiting for the final vote form the senates today, which could spread a little hope and optimism in the market if passed, but until then the shiny metal could fluctuate sharply during the day.
U.S. lawmakers (the House) have finally reached to an agreement and voted to raise the debt ceiling alongside with applying some measures to cut spending and reduce the budget deficit, after the U.S. president, Barrack Obama, has called on them to close the widening gap and to approve on a plan quickly, where he warned from the consequences of a default, saying that it could lead the country to suffer from another deep financial crisis, however, the plan will go to the Senate today for a final vote.
Among other precious metals, silver also inclined today recovering the losses recorded in the past session, where after the opening of $39.24 per ounce, the metal surged to reach a high of $39.78 and then retreated to the low of $39.10, while the metal is trading now around $39.61 per ounce.
However, platinum slumped today after the opening of $1800.00 per ounce, recording the high of $1801.00 per ounce and the low of $1793.00, and the metal is currently trading around $1797.00 per ounce.