Summit

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.

According to French Finance Minister Chrisitine Lagarde this time G20 meeting will be focused on discussing of global economic imbalances and food inflation. It is the first meeting of G20 this year which will behold today in Paris and last for 2 days. The previous summit was held last November in Seoul and addressed currency and trade imbalances.

On Monday the Chairman of Federal Reserve Ben Bernanke has addressed banks and regulators urging them to Monday to seek for the opportunities to provide credits to small businesses to let them create jobs. According to him small businesses can help to improve the situation with unemployment which lowered to 9.5% in June compared to 9.7% in May. However it is still difficult to get those loans due to conditions.