Gold Tops Record High of $1,900 an Ounce
Record breaking high spurred on civil unrest and a slow global economy
Gold broke through another value barrier Monday morning as it surpassed $1,900 for an ounce for the first time in history, Bloomberg News reports. Fears of financial turmoil and investors looking to protect their wealth are being credited for the unprecedentedly high valuation. “Gold has continued to blast ahead even with a relatively strengthening U.S. dollar, strongly performing treasuries and other safe havens. All of that tells me that this is really all about preserving real purchasing-power," Peter Richardson, chief metals economist at Morgan Stanley Australia Ltd., told Bloomberg. BBC News is pointing to Ben Bernanke's speech at the Jackson Hole, Wyo. summit next week as a sign that Bernanke might announce new stimulus projects from the Federal Reserve:
"The idea for QE2 was conceived during the Jackson Hole summit last year," Ong Yi-Ling of Phillip Futures told the BBC.
"So the markets are hoping similar measures could be announced at this year's speech and that is spurring demand for gold."