Gold hit a record high above $1,620 an ounce

Gold Price Today July 25, 2011: Gold hit a record high above $1,620 an ounce

Spot gold, which has risen nearly 14 percent so far this year, climbed more than 1 percent to a record of $1,622.49 an ounce, before easing to $1,614.06 by 0054 GMT. U.S. gold also hit a record at $1,624.30. It was last quoted at $1,614.80.

Clocks are ticking towards the August 2 deadline for U.S. deficit talks, while President Barack Obama and congressional leaders struggled late on Sunday to break a partisan impasse.

"Markets are focusing on whether the negotiations will be resolved," said Natalie Robertson, a commodities analyst at ANZ. "At this time, we'll see continued volatility and increased safe-haven buying in gold."

Hedge funds and other large speculators last week boosted their bullish bets in U.S. gold futures to the highest in nearly two years as gold rallied on the euro zone's debt crisis and uncertainties around the U.S. deficit talks.

Rating agency Standard & Poor's last week reiterated that there was a 50-50 chance the U.S. AAA credit rating could be cut within three months.

Spot gold has rallied in 14 of this month's 17 trading sessions, and is up 7.6 percent from the end of last month. But so far this year, it has lagged spot silver's 31 percent climb.

"If the U.S. defaults, gold will go up. If they manage to deal with it, we may see gold come down quite quickly," a trader based in Singapore said.

The U.S. dollar steadied against a basket of currencies as investors looked for signs of progress to break the impasse in the U.S. budget talks.

Spot silver gained 0.9 percent to $40.38, after a 1.9 percent gain last week. U.S. silver rose 0.8 percent to $40.44.

Precious metals prices 0054 GMT

Metal Last Change Pct chg YTD pct chg Volume

Spot Gold 1614.06 15.22 +0.95 13.71

Spot Silver 40.38 0.36 +0.90 30.85

Spot Platinum 1795.49 2.49 +0.14 1.58

Spot Palladium 804.50 0.25 +0.03 0.63

TOCOM Gold 4073.00 53.00 +1.32 9.22 37410

TOCOM Platinum 4578.00 14.00 +0.31 -2.51 2713

TOCOM Silver 101.40 3.40 +3.47 25.19 352

TOCOM Palladium 2037.00 -2.00 -0.10 -2.86 90

COMEX GOLD AUG1 1614.80 13.30 +0.83 13.61 22767

COMEX SILVER SEP1 40.44 0.31 +0.78 30.69 4897

Euro/Dollar 1.4381

Dollar/Yen 78.39

TOCOM prices in yen per gram. Spot prices in $ per ounce.

COMEX gold and silver contracts show the most active months

(Reporting by Rujun Shen;Editing by Clarence Fernandez)

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Gold hit a record high above $1,620 an ounce , Gold Price Today July 25, 2011: Gold hit a record high above $1,620 an ounce

What Does the Price of Gold Signify?

Gold Price Today: What Does the Price of Gold Signify? - Gold closed at $1594.10 an ounce July 15th, 2011. This is an increase of 7.5% in two weeks but the media has not focused its coverage on this important event, today's price per ounce closed at $1,602.40. The price of gold is determined by two factors: the value of the dollar and the demand for gold on the world market. Both of these factors have contributed to the increased price of gold but the underlying reasons are what we need to address. The price jumped as high as $1607,45/oz in London as the precious metal extended its recent record-breaking surge.

The United States is in trouble and Timothy Geithner’s face this week show how deeply our debt crisis has become. The stock market rallied on the probability of yet another economic stimulus plan (Quantitative Easing 3) from the Federal Reserve. QE3 may provide short term profits on Wall Street but it will devalue the dollar and our savings along with it. We must concentrate on the credit rating of the United States. As our credit rating is lowered, the confidence on our ability to repay our debt is also lowered. The consequence of a reduction of our credit rating is an increase in the interest rate on our debt in order to entice people to accept the increased rate of default and/or reduced value of the dollar due to inflation (redistribution).

If the interest rate on our debt is revalued up only 0.001%, we would pay an additional $14.3 billion on our debt annually. If the interest rate is raised 1%, we would pay an additonal $143 billion. Our current debt to GDP ratio is 98% – about the same as Portugal. The long term interest rate for Portugal is 10.87% as of July 12, 2011. If the United States would have to pay an additional 8% interest based on the Portuguese debt to GDP ratio, it would add $1.144 trillion dollars annually to our existing debt repayment. This “additional interest” represents our entire federal budget in 1989.

Unless the US dollar loses its standing as the world’s currency, the last scenario is unlikely. However a 2% raise on the interest of our national debt is very likely resulting in another $286 billion dollars on our annual budget. What does the price of gold signify over the past two weeks? The very strong likelihood that our credit rating will be lowered with the United States people paying the consequences. People are buying gold to offset the collapse of the dollar and the Euro.

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What Does the Price of Gold Signify?, Global debt jitters push gold past $1600, Gold Price Hits New Record

Charts Of The Current Gold Price Per Ounce

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