The price of spot gold climbed to a new all-time high following Moody’s intention to review the US AAA rating. $1,600 is the next psychological resistance level and could be breached today as Fed Chairman Ben Bernanke will testify before the Senate. The rally in gold prices is quite remarkable with the commodity rising for the past eight consecutive trading days.
Spot gold is currently trading at $1,590 after climbing as high as $1,593 earlier in the European trading session. Prices were bolstered yesterday by Bernanke’s Congressional testimony as the Fed Chief left the door open for another round of quantitative easing. The threat of a US default and the potential for US interest rates to remain at low levels for an extended period of time has been supportive of the metal and will likely continue to do so until an agreement is reached between the President and Congressional Republicans.
After bottoming at $1,477 on July 1st, spot gold prices have risen almost 8% along with the price of silver which is up 15% in the same time period.
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