The price of gold set a record high for a second straight day Wednesday as investors looked for an alternative to a weakening U.S. dollar.
Various unsettling events in the world in the last few months — such as the political unrest in the Middle East and then the earthquake and tsunami in Japan — have pushed some investors to look for what they view as a secure commodity. Increasingly, they have bought gold and other precious metals in what analysts call a “flight to quality.”
The price of gold edged just above the $1,500 mark Tuesday, after the Standard & Poor’s financial services firm lowered its economic outlook for the United States from “stable” to “negative” on fears that the country’s leaders will not be able to reach a deal to rein in the growing U.S. governmental debt. Wednesday, the price of gold topped $1,506 an ounce.
Some analysts say the price of gold could increase further. Investors have also bought another much cheaper precious metal — silver. It has risen to more than $45 an ounce for the first time since 1980 when its price reached a record $50.35. Prices for palladium and platinum have also been increasing over the last year.
