Thursday, August 4, 2011

Increasingly Expensive, Gold Price New Record

The gold price back to a new record. The contract price of gold rose to the highest record at 1675.90 per troy ounce position in trading Wednesday (03/08/2011) local time after the U.S. economy signaled slowing due to debt issues. It boosted demand for gold as a safe haven.

One of the U.S. economic slowdown signal is a Moody's Investors Service statement that said the U.S. debt rating will likely be trimmed. Yesterday, the agency had also changed the U.S. credit rating outlook to negative.

As a note, the contract price of gold for December delivery rose 21.80 dollars or 1.3 percent, to 1666.30 U.S. dollars on the Comex, New York. Earlier, the price of gold was in the position of 1675.90 U.S. dollars per troy ounce, the highest level in history.

Throughout the year, the history of gold prices have surged 17 percent and scored the highest record of its time. Investors want the gold for safety. They shy away from volatile currency movements, the weakening economy, and political instability. As long as the situation is still bad, investors will buy gold to hedge. Gold is an international currency, its value is not affected by inflation. Gold also accepted everywhere and forever.

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