As Debt Deadline Nears, Gold Continues To Set Records

0 Shares

Gold continues to climb higher and higher.The debt situation in the United States has allowed gold to stay near record highs.

On Wednesday, the precious metal hit a record high of $1,628 an ounce before dropping back down to around $1,615 an ounce, reports Reuters.

The yellow metal has climbed steadily over the course of the month as the U.S. approaches the Aug. 2 deadline set by Treasury Secretary Timothy Geithner as the day the country would default on its obligations.

Also worrying investors is the potential for America’s sterling AAA rating to be downgraded.

“There remains severe concerns current deficit reductions are not enough to avoid default, with ratings agency Standard & Poor’s requiring a $4 trillion reduction commitment over 10 years,” James Moore, research analyst at FastMarkets, told TheStreet.

In addition, the rise in the price of gold had been aided by the sovereign debt crisis in Europe where a number of countries, including Greece and Ireland, may default on their own debts, according to Bloomberg.

Ole Hansen, senior manager at Saxo Bank, told Reuters that investors have been investing in the Swiss franc and Japanese yen, in addition to gold, for security.

Personal Liberty

Special To Personal Liberty

You Sound Off! is written by our readers and appears the last Wednesday of each month. If you would like to submit an article or letter to the editor for consideration for You Sound Off!, send it to yousoundoff@personalliberty.com by the Friday before the last Wednesday of the month. To be considered, a submission should be 750 words or less and must include the writer's name, address and a telephone number. Only the writer's name will be published. Anonymous submissions will not be considered.

Join the Discussion

Comment Policy: We encourage an open discussion with a wide range of viewpoints, even extreme ones, but we will not tolerate racism, profanity or slanderous comments toward the author(s) or comment participants. Make your case passionately, but civilly. Please don't stoop to name calling. We use filters for spam protection. If your comment does not appear, it is likely because it violates the above policy or contains links or language typical of spam. We reserve the right to remove comments at our discretion.