Gold sets new record at $1,624
Gold surged to fresh record highs today, reaching US$1,624/oz as demand for safe haven assets remained strong amid debt problems in the US and Europe.
The ongoing negotiations to raise the US borrowing limit suffered a massive setback late last week when
Republican House Speaker John Boehner walked away from talks with US President Barack Obama.
Republicans are pushing for a short term fix to give the sides more time to agree on a long term budget reduction deal, while Obama insists on a long term agreement.
The US lawmakers have just eight days left until the 2 August deadline to reach an agreement.
Two weeks ago, the US has been warned by rating agencies Moody's and Standard & Poor's that it could lose its AAA debt rating if no progress is made in raising the debt ceiling.
Meanwhile, Moody's today slashed Greece's credit rating to Ca, just one notch above the default rating. The agency commented that it is almost certain that Greece's private debtholders will suffer losses and the country will go into a selective default.
The uncertainty in the US and Europe has reduced demand for riskier assets, which boosting gold's appeal as a safe haven investment.
Gold traded at US$1,615/oz this afternoon. Silver moved in the same direction as the yellow metal, rallying 34 cents to US$40.41/oz, while platinum slipped US$2 to US$1,789/oz.
Today's top risers in the sector were:
Triple Plate Junction (LON:TPJ), up 9 percent at 7.42 pence at midday
Archipelago Resources (LON:AR), up 7.5 percent at 66.95 pence
Caledonia Mining (LON:CMCL), up 6.5 percent at 6.39 pence
First Quantum Minerals (LON:FQM), up 5.5 percent at 9,374 pence
Shanta Gold (LON:SHG), up 4.5 percent at 22.5 pence
The top fallers were:
Ariana Resources (LON:AAU), down 7.5 percent at 4.5 pence at midday
Alba Mineral Resources (LON:ALBA), down 7.5 percent at 0.9 pence
Toledo Mining (LON:TMC), down 6.5 percent at 27.58 pence
Minco (LON:MIO), down 6 percent at 3.5 pence
Frontier Mining (LON:FML), down 6 percent at 3.58 pence
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