Gold traded to another new all-time high overnight, touching $1,624 per ounce on the back of a breakdown in talks between President Obama and House Republicans over raising the $14.3 trillion debt ceiling. Republicans are pushing for a short term boost in the ceiling but White House Chief of Staff Bill Daley told NBC’s “Meet the Press” that the president would veto any measure that did not extend the limit into 2013.
The deadline to strike a deal is Aug 2, after which the United States will be unable to meet all of its financial obligations. In response to the impasse, the price of gold surged while stock prices plunged. Worries that the United States is on the verge of losing its AAA credit rating weighed on global markets.
S&P 500 stock futures fell as low as 1,321 late Sunday before rebounding to trade at 1331 early Monday morning.
Fortuna Silver’s Production Rises in Q2
- Fortuna Silver Mines reported that it is prioritizing its silver and gold production and is on track to deliver 2.4 million ounces of silver and 7,368 gold ounces, plus significant base metal production, in 2011.
- The third quarter of 2011 will be a milestone quarter for the Company with the planned start-up of commercial operations at its San Jose Silver and Gold mine in Mexico.
- Silver production at Caylloma for the first two quarters was 912,102 ounces with mill feed being sourced from the Animas, Bateas and Soledad veins. Last month, the Company received the approval of the environmental impact study for the construction of a new tailings dam.
