The price of gold continued to rise to new record levels, as the commodity approached $1,800 per ounce following poor economic news that came out of the United States, Reuters reported. The yellowish metal reached $1,778 per ounce in its largest three-day rally since 2008.
Investor fears over the threats that are currently facing the U.S. economic system, given Standard & Poor’s credit rating downgrade and the apparent hostility within the government, have led to a favoring of the safe-haven commodity markets by traders across the world, according to the news agency.
Gold prices have rise by more than 7 percent this month, precipitating a collective move by traders to move out of the currency markets following America’s loss of its top-notch credit rating, reported Reuters.
“The market could come off from here, but it’s headed in a northerly direction,” Peter Hillyard, head of metal sales at ANZ, told the news outlet. “From where we are now, you might think we could see some sort of pull-back. But I’m talking about a momentary thing, a pull-back like the loading of a gun, which then fires away.”
The price of gold could continue to rise, as news of more government stimulus would likely trigger more rallies for the commodity down the road, The Street reported.