Presently at $1,675.90 per troy ounce, the record price for the yellowish metal was partially driven by troubles with the globe's largest economy. U.S. President Barack Obama signed into law the debt ceiling increase and measures to slash spending but Moody's Investors Service warned the nation's debt grade outlook is negative. The service did not slash the U.S.' perfect credit rating of AAA.
Edel Tully, a London-based analyst with UBS, penned a report noting the U.S. economy's slow expansion is prompting worldwide investors to demand gold.
"Neither European nor U.S. debt issues have been comprehensively dealt with," Tully's Wednesday report states. "Data since last Friday have increased expectations for further quantitative easing" by the central bank of the U.S.
At 6:51 a.m. on Wednesday, gold futures climbed 1.50 percent, a $24.70 rise to $1,669.20 per troy ounce.
Italy's borrowing rates touched euro-era high levels, enhancing concerns about the sovereign debt scourge, according to The Associated Press. The nation's economy is considered Europe's third largest.
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