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Gold Tops $1,500 on Outlook for Escalating U.S. Debt, Dollar
Posted By admin On April 19, 2011 @ 12:17 pm In Featured Stories | Comments Disabled
Tuesday, April 19, 2011
Gold futures rose to a record $1,500.50 an ounce as U.S. debt concerns weighed on the dollar, boosting demand for the precious metal as an alternative investment.
The greenback dropped against the euro on speculation that the European Central Bank will continue to raise borrowing costs as some nations struggle to contain sovereign debt. Standard & Poor’s yesterday revised its long-term outlook on U.S. debt to negative from stable. Gold has climbed 32 percent in the past year, and silver prices have more than doubled.
“The U.S. credit rating will undoubtedly be lowered in the next few years,” said Michael Pento, a senior economist at Euro Pacific Capital in New York. “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 $2.20, or 0.1 percent, to settle at $1,495.10 at 1:38 p.m. on the Comex in New York. Earlier, the price climbed as much as 0.5 percent to the record.
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URLs in this post:
 Bloomberg: http://www.bloomberg.com/news/2011-04-19/gold-futures-top-1-500-on-outlook-for-escalating-u-s-debt-dollar-slump.html
 Image: http://www.stansberryresearch.com/pro/1011PSIENDVD/PPSIM128/PR
 Gold Climbs to Record as Dollar, Inflation Outlook Spur Demand: http://www.prisonplanet.com/gold-hits-record-high-close-to-1064.html
 Gold Gains as Dollar Weakens on Fed; Silver Reaches 30-Year High: http://www.prisonplanet.com/gold-gains-as-dollar-weakens-on-fed-silver-reaches-30-year-high.html
 Gold Jumps to Record as Inflation Outlook Fuels Investor Demand: http://www.prisonplanet.com/gold-jumps-to-record-as-inflation-outlook-fuels-investor-demand.html
 Gold Posts Biggest Monthly Drop in 28 Years as Dollar Climbs: http://www.prisonplanet.com/gold-posts-biggest-monthly-drop-in-28-years-as-dollar-climbs.html
 Gold Climbs to One-Week High as Dollar Declines; Platinum Gains: http://www.prisonplanet.com/gold-climbs-to-one-week-high-as-dollar-declines-platinum-gains.html
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