(RTTNews) - The price of gold was little changed Friday morning as traders await U.S. policy makers' decision on debt ceiling by the fast-approaching August 2 deadline.
Gold for December delivery, the most actively traded contract, was unchanged at $1,616.20 an ounce. Yesterday, gold ended flat after official data showed that U.S. initial jobless claims fell to a three-month low last week. Gold also declined as some investors sold the yellow metal after a rally to a record high.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved up to 1,262.97 tons from 1,244.80 tons, indicating increased safe-haven appeal amid persistent concerns about a possible downgrade of U.S. government debt next month.
Meanwhile, the U.S. dollar moved back to a weekly-high versus the euro and recovering from a 2-month low against sterling. The buck was struggling around its record low against the Swiss franc and trading weak versus the yen.
In economic news from the euro zone, annual inflation slowed to 2.5 percent in July, flash estimate published by Eurostat showed today. Economists were expecting the annual rate to remain unchanged at 2.7 percent. But inflation has been staying above the central bank target of 'below, but close to 2 percent' since December 2010.
Elsewhere, the prices of silver and platinum ticked lower in morning deals.
In economic news, U.S. Commerce Department will release its advance estimate of second quarter GDP at 8:30 a.m. ET. Economists expect GDP growth of 1.9 percent for the quarter, the same pace as in the previous quarter.
The results of the Institute of Supply Management-Chicago's business survey for July are scheduled to be released at 9:45 a.m. ET. Economists expect the business barometer index based on the survey to remain unchanged at 61.1.
At 9:55 am ET, the Reuters/University of Michigan's final report on the consumer sentiment index for July is scheduled to be released. Economists expect the index to be revised up to 64 from the mid-month reading of 63.8.
