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, Ã¢â‚¬Å“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.Ã¢â‚¬Â
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.
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