Gold breaks the $1600 barrier
Gold has broken the $1600 barrier today when it went to a nominal peak of $1609.51 per troy ounce before settling back to $1603 by mid-morning.
This price hike is a result of the debate about the US debt ceiling, which is currently dividing the Senate, and the ongoing EU sovereign debt crisis. Investors are moving away from dollars and Euros and are placing their faith in the yellow metal.
Now at 11 days, gold has now had its longest price rise run since 1980 when high oil prices and a squeeze on the silver market, caused by oil company executives Nelson Bunker Hunt and William Herbert Hunt attempting to corner the global market in silver, by accumulating large amounts of the metal.
Silver has also piggy-backed on gold’s rise hitting $40.84, it highest since the price collapsed in May.
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