Gold futures rose to a record $1,500.50 an ounce as U.S. debt concerns weighed on the dollar, boosting demand for the precious metal as an alternative investment.
The greenback dropped against a basket of six currencies following Standard & Poors revision yesterday of its long-term rating of U.S. debt to negative from stable.
Investors are shocked and flocking to gold as the downgrade threw a cold blanket over the dollar, said Lim Chae Myung, a Seoul-based trader at Hyundai Futures Co. The bullish trend becomes pronounced as more and more people get out of the dollar to buy hard assets.
Gold futures for June delivery rose $2.40, or 0.2 percent, to $1,495.30 at 12:33 p.m…. Full Forex News