Gold to Extend Gain If U.S. Raises Debt Limit: Chart of the Day
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Gold may rally further from this month’s record if President Barack Obama wins lawmakers’ agreement to raise the U.S.’s debt ceiling, weakening the dollar and boosting demand for the precious metal as a store of value, according to Korea Investment & Securities Co.
The CHART OF THE DAY shows the spot gold price in dollars has climbed along with increases in the U.S.’s statutory debt limit over the past 16 years. Immediate-delivery gold reached a record $1,610.10 an ounce yesterday, as concerns that debt crises in Europe and the U.S. will roil global financial markets boosted demand for the precious metal as a haven.