euro zone debt crisis

Spot gold made it movements near the level of $1,600 Thursday as investors are waiting for the outcome of a euro zone summit whereas concerns over the US debt ceiling still support the growth.

European Union leaders will meet later in the day to seek a convincing solution to Greece's debt crisis. Failure to reach agreement could cause economic damage to the global economy, the head of the European Commission warned.

The gold market is likely to wait for direction as investors watch for the outcome of the meeting, as well as progress in the U.S. deficit talks.

Gold prices eased slightly on Wednesday as markets are expecting positive outcome for Thursday's euro zone summit as well as US debt ceiling issue.

Spot gold thus declined by 0.1% to $1,586.56 an ounce at 0913 GMT. U.S. gold futures GCv1 for August delivery were down $13.90 an ounce at $1,587.20.

On concerns over euro zone debt and debt crisis in the US gold experienced 11-session rally, longest in 40 years, moving up to $1,609.51 an ounce.

Gold prices surged higher above $1,600 an ounce in Europe on Monday on fears over the euro zone debt crisis and the threat of a U.S. default.

Spot gold rose as high as $1,601.80 an ounce and was up 0.5 percent at $1,601.28 an ounce at 1044 GMT. Gold rose more than 3 percent for a second straight week to Friday, a feat it has not achieved since February 2009.

According to the quarterly survey by the Nielsen Company global consumer confidence declined in the second quarter to the lowest level since the second half of 2009, the height of the global economic downturn. In the United States consumer sentiment was weaker than one and a half year ago.

The survey reveals that consumers across the globe continue tightening their belts and plan to cut their expenses on different luxuries and extra things.

Prices for spot gold remained steady on Wednesday sticking to their 5% gain during the past seven sessions and moving towards its record high on escalating fears over a euro zone debt.

"Investors are really fearful that the debt crisis will spread to nations beyond Greece," said Ong Yi Ling, an analyst at Phillip Futures.

Gold prices declined Monday on stronger dollar as fears about the euro zone debt crisis deepened ahead of the bloc's finance ministers' meeting, which has been overshadowed by the arrest of the International Monetary Fund chief.

The euro slid to a six-week low against the dollar after Dominique Strauss-Kahn was charged with sexual assault, increasing uncertainty on aid for Greece and other indebted euro zone countries. The dollar index , a measure of the greenback's strength against a basket of currencies, advanced to its highest since early April.

As showed the latest survey from Goldman Sachs 10 out of the 91 banks subjected to Europe's stress tests are anticipated to fail.