Bullion strikes record above $1,700 on S&P downgrade

Bullion roared to record highs above $1,700 an ounce on Monday as an unprecedented downgrade to the U.S. credit rating sent investors scrambling out of riskier assets, hammering equity markets and the dollar.

Bullion strikes record above $1,700 on S&P downgrade 72734142

Both U.S. gold futures and cash gold could rise further if pledges by the Group of Seven nations to support battered financial markets fail to bear fruit as investors turn their attention to the Federal Reserve's policy-setting committee, the FOMC, meeting on Tuesday.

The one notch downgrade by Standard & Poor's of the U.S. long-term rating on Friday added to the threat of contagion from the euro debt crisis, fears over recession in the United States and even the possibility of a third round of U.S. quantitative easing.

Spot gold touched a lifetime high around $1,702 an ounce, its 11th record in 19 sessions -- lifting the price of silver by more than 5 percent. The U.S. December gold contract earlier hit a record about $1,704 an ounce.

http://www.reuters.com/article/2011/08/08/us-markets-precious-idUSTRE7592IU20110808

Bullion strikes record above $1,700 on S&P downgrade

Bullion strikes record above $1,700 on S&P downgrade

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