The clock is ticking. There are seven days until August 2nd, a date by which, the Obama administration has claimed, the nation will default on its sovereign debt, a first in US history. As a result of the impeding scenario with potentially disastrous economic consequences, gold (NYSE:GLD) prices have broken new ground today, reaching another record high as investors flock to the safe haven asset in droves. Matthew Zeman, strategist at Kingsview Financial, says that smart money is looking for cover as the dollar will likely lose value, “Gold is feeding off the uncertainty of the debt negotiations…Gold is in a ‘can’t lose’ situation with the debt negotiations because regardless of the outcome, the dollar is going to suffer.” The yellow metal closed up $10.70 today, bringing prices to an all time high today of $1,612 per ounce, down from session highs of $1,624.
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Silver (NYSE:SLV) also got a small bump in trading, moving higher above the $40 price level to close at $40.36 per ounce in September futures. In other precious metals activity, Palladium also moved higher today, closing up $2.60, or 0.3 percent, to $809 per ounce, while Platinum fell off slightly, down $4.40, or 0.2 percent, to $1,794 per ounce.