U.S. Debt Fears Push Gold Above $1,500

The beleaguered USD boosted demand for precious metals as U.S. debt concern pushed investors to find a safer haven than the greenback. Gold futures hit a record $1,500.50 an ounce today, having climbed 31 percent in the past year while silver prices have doubled.

According to Michael Pento, a senior economist at Euro Pacific Capital in New York, “The U.S. credit rating will undoubtedly be lowered in the next few years; this will mean much higher borrowing costs and a much lower currency. International investors have been using gold and silver as an alternative currency and an alternative to the dollar, and this will only exacerbate and accelerate that process.”

Gold futures for June delivery rose $3.50, or 0.2 percent, to $1,496.40 at 1:08 p.m. on the Comex in New York. Gold for immediately delivery rose as much as 0.3 percent to an all-time high of $1,499.32.

Silver futures for May delivery rose 75.4 cents, or 1.8 percent, to $43.71 an ounce. Earlier, the price reached $43.815, the highest since 1980.

Source:  Bloomberg

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