Gold climbed $6.80 to $1,589 per ounce early Thursday morning and is on pace for its ninth consecutive positive day. The macro-economic backdrop continues to support gold prices as a confluence of events have helped to drive the yellow metal to a series of new record all-time highs.
Michael Jansen, in J.P. Morgan’s “Base and Precious Metals Daily,” noted that “Aside from the simple fact that the US could default in but a few weeks, and Greece could implode before the end of the summer, the prospect of the FOMC engaging on QE3 cannot be ruled out…We remain bullish and look for the strangely ETF and futures trading community to add to their length along with the physical holders of gold, where demand continues to be robust.”
In addition to receiving a boost from speculation over the possibility of QE3, gold is rising on back of yesterday’s news that Moody’s Investors Service placed the U.S. credit rating under review for a downgrade. The lack of an agreement in Washington to raise the $14.3 trillion debt limit drove the action by Moody’s.
The move by Moody’s, announced after the closing bell yesterday initially led to a plunge in equity prices. However, stocks are recovering this morning with S&P 500 stock futures up 3.30 to 1315.50 after trading as low as 1302 late Wednesday.
Clifton Star Releases Gold Resource for Donchester
