spot gold

Gold declined more than 1% Monday after Barack Obama said lawmakers had reached a deal to cut the country's deficit, which, if approved, would remove the threat of a default on debt.

The most-active U.S. gold futures fell more than 1 percent to $1,608.2, but recovered to trade down 0.9 percent at $1,616 an ounce by 0634 GMT.

Spot gold fell 0.8 percent to $1,613.24, off a record high of $1,632.30 set on Friday.

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.

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.

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 moved higher during Thursday trades further accumulating its gains boosted by inflation concerns which prompt central banks to raise their interest rates.

China hiked rates by 25 basis points on Wednesday, and the European Central Bank is expected to follow suit later on Thursday.

"The rate move reignited the inflation issue and people started to think that it is more of an issue than expected," said Jonathan Barratt, managing director at Commodity Broking Services in Sydney.

On Tuesday gold prices remained just below $1,500 an ounce in Europe as the US dollar increased against the euro offsetting the positive impact of rising risk aversion fuelled by uncertainty over plans to roll over Greek debt.

Spot gold was trading at $1,497.45 an ounce at 0923 GMT, against $1,495.54 late in New York on Monday. U.S. gold futures for August delivery GCv1 rose $15.90 an ounce to $1,498.40.

The euro declined as the US dollar appreciated on worries over China’s economy and concerns that the US companies will pull back their dollars earned overseas.

On Monday gold increased by 0.5% as investors decided to benefit from the lowered prices while expecting the euro to further advance against the US dollar.

Spot gold was quoted at $1,494.59 an ounce at 1138 GMT compared to $1,485.80 late in New York on Friday. U.S. gold futures for August delivery rose $12.60 an ounce to $1,495.20.

Greece last week approved austerity measures needed for it to access another tranche of funding from the European Union and IMF, sparking a relief rally in some assets seen as higher risk, and weighing on gold.

Spot gold remained steady during Friday trades completing the week of narrow trading as investor appetite for the save haven bullion diminished on Greece’s austerity measures.

Thursday Greek parliament passed the final austerity measures so as to get the emergency financing from the international lenders and avoid a default.

Meantime, it is widely expected that concerns over troubling US economy will support gold’s appeal.

Spot gold was little changed at $1,498.70 an ounce by 0602 GMT, nearly flat from a week earlier.

Gold dropped slightly on growing investors’ appetite for risk after Greece looked increasingly likely to push through austerity measures, which offset the potentially bullish impact of a weaker dollar.

During the past three months gold has been benefiting from the investor concerns over Greece's potential to affect the rest of the euro zone economy, of the triple disaster in Japan and over the outlook for global economic growth.

Gold prices leveled on Friday after dropping 2% in the previous session supported by concerns over Greece's ability to remain solvent.

At 0928 GMT spot gold traded at $1,521.00. But while gold looked vulnerable according to the charts, analysts said the high level of uncertainty would stem any steeper sell-offs.

"Technically, it doesn't look ideal, but even if we breach $1510, at $1,480. we'll stop. I can't see people liquidating gold right now with everything that is happening," said VTB Capital analyst Andrey Kryuchenkov.

Gold declined after the US Federal Reserve said US growth was slowing but gave no hint that it needed to provide additional economic stimulus.

The gold price is expected to grow 0.4% this week bringing gains for the month so far to 0.7 percent.

Spot gold priced in dollars was last down 0.4 percent on the day at $1,543.29 an ounce by 0834 GMT, having failed to convincingly pierce a key level of resistance at $1,550.00 the previous day.

Gold stayed almost unchanged ahead of the upcoming report on a US Federal Reserve meeting. On Wednesday the Fed ends its two day meeting which is expected to clarify the situation about an economy.

Spot gold traded steadily at $1,545.93 an ounce by 0542 GMT after rising as high as $1,547.90 on Tuesday. In early May gold reached a lifetime high around $1,575.

"Approaching the resistance level, we can say gold is a bit cautious," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.

Gold appreciated on Monday having reached its biggest one-day gain in three weeks in the previous session, as the U.S. dollar lost ground and equities firmed on hopes of progress on Greece's debt crisis.

Spot gold added $1.40 to $1,539.80 an ounce by 0028 GMT after rising above $1,541 on Friday. Gold is still below a lifetime high around $1,575 touched in early May.

Silver was steady at $36.00 an ounce, below a record at $49.51 an ounce in April.