US debt ceiling

Gold moved up to its record highs on Monday as the talks over US debt ceiling are heating, and concerns over US possible default are growing.

While most investors believe a deal will be done, nervousness ahead of the decision is still pressuring the dollar, lifting U.S. Treasury yields and benefiting gold.

"This has reminded people of the risks involved in government bonds," said Mitsubishi analyst Matthew Turner. "For some investors, gold is a competitor as a safe-haven asset."

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.