Gold price climbs to new record on debt uncertainty

July 19, 2011 04:38

The price of gold has hit a new record price of $1,610 an ounce as debt worries in the US and Europe have intensified. – BBC

From BBC News


It climbed above $1,600 for the first time on Monday, capping a record-breaking rally of 11 days of gains.

Gold is considered a safe investment and usually gains at times of global economic uncertainty.

Silver also continued to climb, to above $40 an ounce, its highest price for two months.

“Gold hit another milestone… at $1,600 as investors lose confidence in the ability of politicians to get a grip with the debt problems weighing down on sentiment,” said Michael Hewson from CMC Markets, a trading group.

“More advances look likely,” he said.

The record breaking price comes ahead of Thursday’s summit of eurozone leaders in Brussels where they will once again try to contain the growing debt crisis.

Investors are concerned that Greece may default on its debt, and countries such as Italy and Spain, who are also struggling with high debt levels, will get pulled into the crisis.


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