Economic Uncertainty Boosts Gold To Record $1,301.01; Silver To 30-Year High

Linda Young – AHN News Writer

New York, NY, United States (AHN) – Futures prices for gold hit a record high $1,301.30 per ounce in trading on Friday, while silver futures hit a 30-year high at $21.40 per ounce and the dollar fell in relation to other world currencies.

Analysts expect gold prices to remain high for the foreseeable future because of continued uncertainty in the United States and European economies.

Factors contributing to that uncertainty over the U.S. economy include high unemployment along with a weak dollar and massive federal debt.

Gold prices have reached record highs in six of the past seven trading sessions. Analysts say that investors looking for a cheaper investment alternative have now turned to silver, which drove prices up to levels last seen in 1980. Investors view gold and silver as safe investments during times of economic uncertainty.

Another factor driving up precious metal prices is the Federal Reserve’s decision to keep its benchmark interest rate down since December of 2008, along with buying U.S. Treasuries.

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