Arab Today, arab today gold hits record highs as investors
Last Updated : GMT 00:42:28
Arab Today, arab today
Arab Today, arab today

Gold hits record highs as investors

Arab Today, arab today

Arab Today, arab today Gold hits record highs as investors

London - Arabstoday

Gold prices hit record highs yesterday after negotiations to lift the US debt ceiling hit stalemate over the weekend, raising fears over a possible default and boosting the appeal of bullion versus US assets like Treasuries and the dollar. Democrats and Republicans in Congress are bitterly divided over plans to cut the US deficit, a necessary move before the debt ceiling can be raised. With the August 2 deadline for a resolution fast approaching, the world\'s largest economy is facing an unprecedented debt default. If this happens, investors could dump the dollar and US Treasuries. While most investors believe a deal will be done, nervousness ahead of the decision is still pressuring the dollar, hurting long-dated US Treasuries and benefiting gold. Article continues below \"There is ongoing upside for gold which is a reflection of the negative real interest rate environment and structural risk, which is still very high,\" said Michael Lewis, head of commodities research at Deutsche Bank. \"The next phase of that is obviously the debt ceiling.\" Spot gold hit a new peak at $1,622.49 an ounce and was up 1.2 per cent at $1,617.31 an ounce at 1152 GMT. It has reached record highs in each of the last five consecutive quarters, and is on track for its biggest monthly gain since April this month on concerns over Eurozone debt levels as well as the US negotiations. The stalemate in Washington led to safe-haven German Bunds outperforming US Treasuries yesterday, as risks of a US default outweighed worries over Eurozone debt. US Treasury yields rose and European shares slipped. Price drop Long-dated US Treasury debt prices fell and the cost of insuring the country\'s debt from default rose yesterday on investor concern that the world\'s biggest economy could lose its prized top-notch credit rating after debt talks collapsed. The dollar dipped against a basket of currencies, while the Swiss franc, often seen as a haven for investors, rose against the euro and the US unit. The euro slipped after Moody\'s downgraded Greece by three notches. \"With little optimism on US debt talks at the moment, the gold price acutely reflects investor nervousness that limited progress will be made before the August 2 deadline,\" UBS said in a note. \"This nervousness is in many ways justified as the threat of a US ratings downgrade is very real.\" \"S&P has threatened that a ratings downgrade is possible even this month, if progress on the negotiations is insufficient. With just a few days left in the month, it is increasingly likely that investors will continue to buy gold as a defensive trade.\" Rating agency Standard & Poor\'s last week reiterated that there was a 50-50 chance the US AAA credit rating could be cut within three months. Hedge funds and other large speculators last week boosted their bullish bets in US gold futures to the highest in nearly two years as gold rallied on the Eurozone\'s debt crisis and uncertainties around the US debt talks. Managed money in Comex gold added 16,135 lots in the week ended July 19, boosting their net long position to 238,319 lots, which marked the highest holding for the key speculator group since the week of October 18, 2009. US gold futures for August delivery were up $16.80 an ounce at $1,618.30, off a high of $1,624.30. \"The stumbling block for gold is the relatively large size of Comex specs,\" said UBS. Debt discussions \"These are of course not normal times, so the extension in the Comex gold book can continue for a while longer. But the danger is that positive headlines out of the US debt ceiling discussions could prompt recent gold specs to liquidate.\" Among other precious metals, silver was bid at $40.70 an ounce against $40.02, tracking gains in gold.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today gold hits record highs as investors Arab Today, arab today gold hits record highs as investors

 



Arab Today, arab today
Arab Today, arab today Fadi Kataya explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Messi visit will contribute in tourism

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures

GMT 21:36 2017 Wednesday ,22 February

Opec needs to prolong cuts to eliminate surplus

GMT 16:32 2017 Wednesday ,22 February

US Treasury chief tells IMF to monitor currencies

GMT 16:08 2017 Wednesday ,22 February

Qatari banks merger to rebalance financial sector

GMT 05:57 2017 Wednesday ,22 February

Britain risks clash with EU over RBS bailout

GMT 05:26 2017 Wednesday ,22 February

Singapore carbon tax would hit refiners, help renewables

GMT 05:18 2017 Wednesday ,22 February

Chinese PM: US should avoid ‘trade war,’

GMT 20:59 2017 Tuesday ,21 February

Economy good, but homes in German cities overpriced
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday