The UK pound slid to a 4-day low against the euro on Monday after a report showed U.K.'s manufacturing sector declined for the first time in two years in July. The sterling also depreciated against other majors. The pound slipped to a 4-day low of 0.8788 per euro and the next downside target level for the UK currency is seen at 0.880.

Gold declined more than 1% Monday after Barack Obama said lawmakers had reached a deal to cut the country's deficit, which, if approved, would remove the threat of a default on debt. The most-active U.S. gold futures fell more than 1 percent to $1,608.2, but recovered to trade down 0.9 percent at $1,616 an ounce by 0634 GMT. Spot gold fell 0.8 percent to $1,613.24, off a record high of $1,632.30 set on Friday.

The yen surged against a basket of currencies on the weaker US economic data in the second quarter. As of 8:45 am ET, the yen traded higher at 77.13 against the US dollar, 126.13 against he pound, 110.41 against the euro, 66.66 against the New Zealand dollar, 80.52 against the Canadian dollar and 84.30 against the Australian dollar.  

On Friday the Swiss franc surged against majors as traders sought for safe haven currencies after the weaker than expected US economic growth report. According to the data by the US Commerce Department the US economy grew at a slower pace than expected in the second quarter of 2011. U.S. gross domestic product grew at a 1.3 percent annual rate for the second quarter of 2011. Most economists had predicted a somewhat more robust, 1.9 percent growth in GDP.

Gold moved up to its record highs on Monday as the talks over US debt ceiling are heating, and concerns over US possible default are growing. While most investors believe a deal will be done, nervousness ahead of the decision is still pressuring the dollar, lifting U.S. Treasury yields and benefiting gold. "This has reminded people of the risks involved in government bonds," said Mitsubishi analyst Matthew Turner. "For some investors, gold is a competitor as a safe-haven asset."

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.

Gold prices eased slightly on Wednesday as markets are expecting positive outcome for Thursday's euro zone summit as well as US debt ceiling issue. Spot gold thus declined by 0.1% to $1,586.56 an ounce at 0913 GMT. U.S. gold futures GCv1 for August delivery were down $13.90 an ounce at $1,587.20. On concerns over euro zone debt and debt crisis in the US gold experienced 11-session rally, longest in 40 years, moving up to $1,609.51 an ounce.

After 11 days of consecutive gains gold remained steady below its record high on Tuesday. Experts believe gold appeal as a safe haven will remain as there is no short-term prospects for euro zone crisis solution while the White House was pursuing a fallback plan with Congress to raise the U.S. debt ceiling and avert a default that could plunge global financial markets into chaos. Spot gold was little changed at $1,602.41 an ounce by 0325 GMT, off the record high of $1,607.01 reached on Monday. U.S. gold GCcv1 was almost steady at $1,603.20.

Gold prices surged higher above $1,600 an ounce in Europe on Monday on fears over the euro zone debt crisis and the threat of a U.S. default. Spot gold rose as high as $1,601.80 an ounce and was up 0.5 percent at $1,601.28 an ounce at 1044 GMT. Gold rose more than 3 percent for a second straight week to Friday, a feat it has not achieved since February 2009.

Prices for spot gold remained steady on Wednesday sticking to their 5% gain during the past seven sessions and moving towards its record high on escalating fears over a euro zone debt. "Investors are really fearful that the debt crisis will spread to nations beyond Greece," said Ong Yi Ling, an analyst at Phillip Futures.

Gold moved higher during Thursday trades further accumulating its gains boosted by inflation concerns which prompt central banks to raise their interest rates. China hiked rates by 25 basis points on Wednesday, and the European Central Bank is expected to follow suit later on Thursday. "The rate move reignited the inflation issue and people started to think that it is more of an issue than expected," said Jonathan Barratt, managing director at Commodity Broking Services in Sydney.

On Tuesday gold prices remained just below $1,500 an ounce in Europe as the US dollar increased against the euro offsetting the positive impact of rising risk aversion fuelled by uncertainty over plans to roll over Greek debt. Spot gold was trading at $1,497.45 an ounce at 0923 GMT, against $1,495.54 late in New York on Monday. U.S. gold futures for August delivery GCv1 rose $15.90 an ounce to $1,498.40. The euro declined as the US dollar appreciated on worries over China’s economy and concerns that the US companies will pull back their dollars earned overseas.

The euro lost its gains against the dollar and the yen as traders sold the single currency after Standard & Poor's warned that Greece's debt rollover plan could shift the ratings into selective default. Meanwhile, the euro fell to a 4-day low against the pound. The euro declined to a 4-day low of 0.9007 against the pound, compared to last week's close of 0.9043. If the euro slides further, it will fall below 0.90 and target the 0.898 level.

On Monday gold increased by 0.5% as investors decided to benefit from the lowered prices while expecting the euro to further advance against the US dollar. Spot gold was quoted at $1,494.59 an ounce at 1138 GMT compared to $1,485.80 late in New York on Friday. U.S. gold futures for August delivery rose $12.60 an ounce to $1,495.20. Greece last week approved austerity measures needed for it to access another tranche of funding from the European Union and IMF, sparking a relief rally in some assets seen as higher risk, and weighing on gold.

Spot gold remained steady during Friday trades completing the week of narrow trading as investor appetite for the save haven bullion diminished on Greece’s austerity measures. Thursday Greek parliament passed the final austerity measures so as to get the emergency financing from the international lenders and avoid a default. Meantime, it is widely expected that concerns over troubling US economy will support gold’s appeal. Spot gold was little changed at $1,498.70 an ounce by 0602 GMT, nearly flat from a week earlier.