In the morning and then in the afternoon, the yellowish metal gained value to notch prices not seen before as the debt ceiling debate between Republicans and Democrats in Washington shows "little prospects for compromise," Reuters reports. Gold futures' record price now is $1,624.30 per troy ounce.
"No matter what the ratings agency says, no matter what anybody says, people think the U.S. government is going to be good for it," managing director Stephen Massocca of Wedbush Morgan in San Francisco told Reuters. "And ultimately people think there will be some sort of Band-Aid slapped on this at a minimum."
At 2:47 p.m. on Monday, gold futures increased 0.74 percent, an $11.90 cent gain to $1,613.40 per troy ounce.
If political leaders cannot achieve a compromise, the repercussions could be quite severe, Reuters reports. Among the peril the U.S. faces is a default, having its high credit rating reduced and causing serious threats to the stability of markets throughout the world.
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