Gold News & Info

Source: Marketwatch

San Francisco— Gold futures slipped below $1,600 an ounce Wednesday as signs of progress on U.S. and European debt issues prompted investors to sell the metal after its steep recent climb. Gold pared its losses, however, after disappointing housing data. Gold for August delivery fell $4.20, or 0.3%, to settle at $1,596.90 an ounce, extending its decline after modest losses in the Tuesday session and after a journey into record territory recently. Gold nosedived in electronic trading Tuesday after U.S. President Barack Obama said there has been �some progress� in talks with lawmakers on raising the U.S. debt ceiling.

�Optimism towards the budget and the debt-ceiling � pulled gold lower, said Adam Klopfenstein, a senior market strategist as Lind-Waldock in Chicago. But the correction has been �shallow,� he said. �There�s still a lot of risk factors in the global economy� and with Europe�s sovereign-debt crisis to provide a floor to the metal, Klopfenstein added. European leaders prepared for a Thursday summit seen as one of the last chances to quash the sovereign-debt crisis and save the euro. The leaders will expected to finalize the second rescue package for Greece and discuss steps to prevent spreading. See full story.