Gold (NYSE:GLD) rose to a record high as other Euro-Zone countries continue to display signs of their own sovereign debt crises like that of Greece and investors look for a safe-haven for their money. On the Comex division of the New York Mercantile Exchange, gold hit a high today of $1,562.30 an ounce, beating its previous record of $1,557.10 set on May 2. Today will mark the sixth session in a row that gold futures have made gains.
While Ireland and Portugal have been in danger of a debt crisis like that of Greece for some time now, and have both received financial assistance, now Italy and Spain are showing signs of their own debt crises, and the two countries have significantly larger economies than the other endangered countries so far. But for the same reasons gold rose, silver (NYSE:SLV) continued to fall today, as faltering economies are likely to decrease demand for the metal, which has practical, industrial applications. The September silver contract fell 0.2% to $35.63 an ounce.
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Gold’s record highs have come just as seasonal demand should be its weakest. The fall is gold-buying season in India, where the metal is purchased for various festivities, which is then followed by Chinese New Year purchasing. It’s not unlikely that gold prices could top $1600 an ounce come September if sovereign debt fears continue.