Futures Market News
Gold futures set to slip amid concerns the precious metal's climb was overdone
Jul 26, 2011 05:39 AM
Further compounding the belief that a decrease is imminent is the prospect of U.S. political leaders compromising to reach an agreement as to how they may raise the nation's debt ceiling. President Barack Obama issued a warning stating the economy will very seriously suffer unless a compromise between opposite sides is finalized.
"The metal is currently trading close to the overbought region," states a Tuesday report by UBS AG analyst Edel Tully. "We expect a correction in the near term."
At 6:14 a.m., gold futures slipped 0.01 percent, a 20 cent drop to $1,614.20 per troy ounce.
On at least two occasions on Monday, gold futures pushed to record highs setting the precious metal's top price of $1,624.07 per troy ounce.
With the deadline and the prospect of a U.S. default exactly one week away, the Washington Post reports both President Obama and Speaker of the House John Boehner delivered television addresses to articulate plans to slash debt. But the more conservative wing of the Republican party stood opposed to Boehner's plan while newer members of the party also held their doubts.
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