Flight to Safety Sends Gold Soaring Above $1,600 an Ounce |
Market anxiety over debt issues in Europe and prolonged budget negotiations in the United States sent gold above $1,600 an ounce Monday, as investors sought the safe haven status of the commodity.
Spot gold rose as high as $1,600.40 an ounce today, with global equity markets largely taking a step back. Data released Friday from the Commodity Futures Trading Commission showed that gold futures and options received a large increase in bullish bets, likely helping to boost the metal.
Market commentators have expressed disappointment that European and U.S. debt discussions haven't made more progress. Equity markets haven't been punished yet, but critics point out that an economic disruption could easily send an already weak recovery into a tailspin.
The United States faces an August 2 deadline to raise its $14.3 trillion debt ceiling, or face default.
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