Gold futures slipped from record high values following remarks from the U.S. president stating he, fellow Democrats and Republican leaders in Washington have a pact pending that will prevent a debt default, Bloomberg reports.
Demand for the precious metal, which notched a record high of $1,637.50 per troy ounce on Friday, waned after President Barack Obama said U.S. senators and congressional leaders have a plan to boost the debt ceiling by more than $2 trillion while slashing as much as $2.5 trillion during the next 10 years.
Bullion is "lower this morning in reaction to the U.S. debt deal news," states a report by analyst James Moore of TheBullionDesk.com in London. "There still remains some pessimism that the deal could fall at the last hurdle, but given the scale of gains posted in recent weeks the yellow metal is vulnerable to a deeper correction should the deal be given full approval."
At 5:32 a.m. on Monday, gold futures slipped 0.85 percent, a $13.90 fall to $1,617.30 per troy ounce.
Despite the deal, Standard & Poor's might not keep the U.S.' perfect AAA credit rating intact, Reuters reports.
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