Gold Rises to Record $1,498.60 as S&P Cuts U.S. Credit Outlook

Gold futures rose to a record $1,498.60 an ounce after Standard & Poor’s revised its U.S. credit outlook to negative, boosting the appeal of the precious metal as an alternative to the dollar.

S&P changed its long-term rating from stable, citing “material risk” that policy makers won’t reach an accord on “medium- and long-term budgetary challenges.” Gold has gained 31 percent in the past year, and silver has more than doubled, partly on concern that Europe’s sovereign-debt crisis would escalate.