Gold dipped $3.00 to $1,611 per ounce early this morning despite weakness in the U.S. dollar and no agreement between president Obama and congressional Republicans to raise the debt ceiling. The August 2 deadline is looming and with each day that passes the United States risks its AAA credit rating.
Gold has been a chief beneficiary of the recent uncertainty. ScotiaMocatta’s Precious Metals Research team highlighted the possibility of a surge in gold to the $1,670 per ounce level:
“Gold is closing at a fresh record high…Despite reaching a price target, there is nothing to suggest this up move is over. Looking at the 3 year trend, the next resistance level comes in at 1670 from the top of a very well defined bullish channel. Solid support lies near April high 1577.”
S&P 500 stock futures shook off fears over the debt ceiling, climbing 2.50 to 1336 ahead of the opening bell on Wall Street.
Alacer Gold’s Production Rises 11%, Beats Guidance
