Gold (NYSE:GLD) rose over $1,600 per ounce in electronic trading this morning as European and domestic debt fears continue to consume investors’ rationale. The “haven” investing in gold has been rampant in recent weeks with the latest run on futures of the precious metal seeing it close over $1,590 per ounce last Friday. Gold set new high-water marks in trade price several times in the course of the 5 day period. This morning gold got a $7.50 bounce as Italian and Spanish government bond yields rose sharply, signaling that investors are losing faith in the financial prospects of two of Europe’s leading economies. Forex analyst Kathleen Brooks remarked, “European sovereign fears, combined with wrangling over raising the debt ceiling, have boosted safe havens.”
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Silver (NYSE:SLV) futures’ prices also spiked higher this morning, moving in sync with their yellow counterpart though not as rapidly, up 82 cents, or 2.1% in premarket trading. Notably, silver slumped towards trading losses last quarter after gold made substantial gains, though some analysts believe that it could move higher and faster than its yellow counterpart in FQ3, “If current uncertainties about the debt deal in the U.S. and risks of contagion of the fiscal crisis in the euro zone subside, then the gold price, to which silver is tied, may be range-bound during the summer. Silver could outperform gold once more toward the end of summer, and we would expect the gold-silver ratio to start declining once more as a result.”