GLOBAL MARKETS-Stock futures drop, gold up on no US debt deal

* U.S. stock futures drop as debt deal elusive

* Gold futures hit record

* Markets have seesawed on signs of progress, inaction

* Boehner tells Republicans no deal likely with Obama
(Updates prices)

By David Gaffen

NEW YORK, July 24 (Reuters) - U.S. stock futures fell and
gold hit a new record as Washington appeared no closer on
Sunday to raising the U.S. debt ceiling to avert a devastating
default.

The decline in equity futures points to a poor open for
U.S. markets and shows investors are getting increasingly
worried about the failure of legislators to coalesce around one
approach.

"The fact that they seem to be jumping from one type of
proposal to another and not converging on anything is beginning
to worry markets," said Steven Englander, head of G10 FX
strategy at Citigroup.

S&P 500 futures fell at the outset of electronic trading.
The benchmark S&P SPc1 was down 0.9 percent, or 11.5 points,
at 1,329.50.

Early currency trading suggested a move away from the U.S.
dollar, with the biggest drop in the greenback coming against
the Swiss franc. In early Asian trading, the dollar dropped to
0.8129 against the Swiss franc CHF=, down 0.7 percent.

In commodities trading, gold XAU= rose to $1,618.71 an
ounce, a new record for the precious metal.

White House officials and Republican leaders scrambled on
Sunday to reassure global markets the United States would avert
a debt default, but the two sides were still not close to a
deal. House Speaker John Boehner told fellow Republicans on a
conference call that a large-scale debt deal was not possible
with President Barack Obama.

An aide to U.S. Senate Majority Leader Harry Reid told
Reuters on Sunday the Nevada senator was outlining a plan that
would cut $2.5 trillion in spending and increase the debt limit
that he hoped would be brought to the Senate floor this week.

Earlier in the day, White House Chief of Staff Bill Daley
warned that there would be a "few stressful days" ahead for
financial markets.

"There's an old saying that things don't matter until the
day they matter; we're getting close to the day when it will
matter," said Quincy Krosby, market strategist at Prudential
Financial in Newark, New Jersey.

In the past few days, markets seesawed on reports
suggesting progress toward an agreement to cut the deficit that
would allow for the U.S. debt ceiling to be raised and avert a
market-roiling default.

U.S. crude oil for September delivery in New York CLc1
was down 70 cents at $99.17 a barrel, and Brent oil futures
LCOU1 in London were down 66 cents at $118.01. For more, see
[O/R]
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Full coverage of U.S. budget and debt [nUSBUDGET]
Possible outcomes for U.S. debt talks [nN1E76I10Y]
Anything possible if U.S. downgraded [nN1E76I1M8]
Insider: Debt deal weighs on U.S. image:
link.reuters.com/tat72s

Graphics:
Euro zone crisis: r.reuters.com/hyb65p
Q2 earnings scorecard: r.reuters.com/dud72s
Inflation adjusted gold price: r.reuters.com/pun62s
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(Additional reporting by Ryan Vlastelica and Steven C.
Johnson; Editing by Dale Hudson)