Gold Soars To All-Time High, Above $1700 After S&P Downgrade

Gold Breaks $1700 (Wall Street Journal, Aug. 8, 2011):

LONDON—The spot price of gold surged above $1,700 a troy ounce, setting new records, as continuing concerns over European debt and an historic U.S. credit-rating downgrade sent investors flocking to the perceived safety of the yellow metal.

Ahead of the New York day, spot gold was up $42.70, or 2.6%, at $1,706.10 an ounce, after racing to a record $1,715.29 an ounce in early trade. Spot silver was up $1.45, or 3.8%, at $39.77 an ounce. Like gold, silver tends to benefit as a perceived hedge against economic insecurity.

Gold soars above $1700 after S&P downgrade (MarketWatch, Aug. 8, 2011):

HONG KONG (MarketWatch) — Gold prices soared above the $1,700-an-ounce barrier on Monday to set another record as the Standard & Poor’s downgrade of U.S. credit ratings amplified worries about global economic outlook, luring investors to the metal’s safe-haven appeal.

Gold futures for December delivery GC1Z +2.92% spiked $54.10, or 3.3%, to $1,705.90 an ounce in electronic trading on Globex, more than recovering the losses it made in a regular session on Friday.

Gold futures rose as high as $1,718.20 an ounce during the session.

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