Gold Rockets Above $1700 on U.S. Downgrade, ECB Intervention
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Investors are continuing to run to gold as a safe haven in light of the S&P downgrade of the U.S. credit rating and the ECB bond buying announcement.
Gold for October delivery is currently up $57.50 to $1707.70, with a day's range of $1678.70-$1716.70.
Late Friday, Standard & Poor's moved its triple-A rating lower by one notch to 'AA+. Previously the rating was affirmed by rival rating agencies Moody's and Fitch. S&P said the budget deal didn't do enough to address a dismal outlook for the financial system.
The ECB announced plans over the weekend to aggressively buy Spanish and Italian bonds to contain the debt crisis in the Euro-zone.
Goldman Sachs raised its three-month gold price forecast to $1,645 from $1,565, which is below the current market price. The investment bank raised its six-month forecast to $1,730 and 12-month forecast to $1,860.
Investors have been getting exposure to gold through ETFs SPDR Gold Shares (NYSE: GLD) and Market Vectors Gold Miners ETF (NYSE: GDX). In addition, gold mining stocks like Barrick Gold Corporation (NYSE: ABX), Goldcorp Inc. (NYSE: GG) and Newmont Mining Corp. (NYSE: NEM).
Gold for October delivery is currently up $57.50 to $1707.70, with a day's range of $1678.70-$1716.70.
Late Friday, Standard & Poor's moved its triple-A rating lower by one notch to 'AA+. Previously the rating was affirmed by rival rating agencies Moody's and Fitch. S&P said the budget deal didn't do enough to address a dismal outlook for the financial system.
The ECB announced plans over the weekend to aggressively buy Spanish and Italian bonds to contain the debt crisis in the Euro-zone.
Goldman Sachs raised its three-month gold price forecast to $1,645 from $1,565, which is below the current market price. The investment bank raised its six-month forecast to $1,730 and 12-month forecast to $1,860.
Investors have been getting exposure to gold through ETFs SPDR Gold Shares (NYSE: GLD) and Market Vectors Gold Miners ETF (NYSE: GDX). In addition, gold mining stocks like Barrick Gold Corporation (NYSE: ABX), Goldcorp Inc. (NYSE: GG) and Newmont Mining Corp. (NYSE: NEM).
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