Gold Strikes Record High Above $1,700
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The price of gold struck a record high above $1,700 an ounce on Monday with dealers flocking to the safe haven metal as Asian stocks tumbled following Standard & Poor's downgrade of U.S. debt.
The price of gold reached $1,704.30 an ounce in Hong Kong trade.
"People are just taking their money out [of other markets], especially from the dollar and euro and investing in gold and the Japanese yen," a Tokyo-based trader told Dow Jones Newswires.
Asian markets were sent spinning on Monday after S&P late Friday cut the United States' AAA rating by one notch, citing deep divisions in Washington over its long-term fiscal standing.
The turmoil has led investors to seek out less-risky gold at a time of economic uncertainty.
S&P's downgrade compounded already weak sentiment amid fears that the Eurozone debt crisis will spread to other nations, while the United States has posted a series of poor data indicating an economic slowdown.
It has led some analysts to warn of another global financial crisis that could even be worse than that of 2008-09.
08 August 2011, 18:32
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For the last three years, western media, economists, analysts and governments have dismissed the possibility of a double dip recession. Wishful thinking... keep burying your heads in the sand fools! Now the second dip of the double dip recession is about to start.
Where did they think U.S.'s military adventurism, Wall Street bailouts and corporate greed will lead to?
Welcome to the Great Global Depression 2.0! Bye bye middle class :-(
