Gold futures were driving toward record highs Wednesday morning and poised to gain in value for the seventh straight day as the spreading sovereign debt crisis prompted investors to seek a haven investment, MarketWatch reports.
Moody's Investors Service slashed its rating of debt in Ireland to "junk" status, as the nation represents yet another member nation of the European Union to see its credit rating suffer during the scourge of debt-hobbled banks. The record high price for gold futures is $1,577.40 per troy ounce, set on May 2.
"Unless there is a new frightener, we might see it finding resistance," David Combe of Commodity Broking Services in Sydney told MarketWatch. "I can't see that there is anything immediate that would see it want to punch above that old high."
At 5:24 a.m. on Wednesday, gold futures climbed 0.67 percent, a $10.40 rise to $1,572.70 per troy ounce. The precious metal is less than $5 from pushing beyond record high prices.
The downgrade comes as a debate rages over whether private sector investors will be involved in remedying debt problems in Greece, the Wall Street Journal reports. Ireland and Greece already have received bailouts, Greece is preparing for another, and Spain, Italy and Portugal are believed to be nearing requests for emergency aid.
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