Gold Prices Hit Record Amid American, European Economic Struggles

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Gold prices recently hit their record high.Gold prices recently reached a record high, in large part because of the sovereign debt crisis in Europe and the impending debt ceiling deadline in the United States.

The yellowish metal peaked at $1,609.51 an ounce, according to Reuters. The price of gold settled a bit but it has been climbing steadily since July 12, when the minutes of the Federal Reserve's June policy meeting were released, indicating that another economic stimulus could be on the way in the U.S.

CNNMoney reports that such action could undermine the value of the American dollar and, in turn, drive up the price of gold.

"I think people are coming to realize that the economy is weakening again and the government might see a need to try to stimulate the economy further," Joe Foster, a portfolio manager with the Van Eck Global International Investors Gold Fund, told the news source.

Gold has also been driven up by activity on the other side of the Atlantic, where Greece, Spain, Italy, Portugal and Ireland are in danger of defaulting, reports Bloomberg.

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