Gold Prices Pull Back
Source: The Street, Chao Deng (7/14/11)
"Investors took some profits following debt-buoyed highs."
Gold and silver prices were seeing slight pullbacks as investors took some profits after U.S. and European debt issues pushed prices to record highs on Thursday.
Gold for August delivery was losing $2 to $1,587 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,590.30 and as low as $1,576, while the spot gold price climbed by $9.20, according to Kitco's gold index.
Silver prices were slipping 9 cents to $38.78 an ounce. The U.S. dollar index was up 0.11% to $75.31 and the euro was down 0.14% vs. the dollar.
The precious metals have been shining safe haven assets this week as debt woes in Europe and the U.S. increased uncertainty in the markets. Gold futures posted a record $1594.90 per ounce high on Thursday.
Moody's announcement that it may revise its U.S. credit rating underscores the dire situation in Washington, but many analysts continue to believe that chances of a U.S. default are slim, easing Wall Street's concerns around any serious financial repercussions. Strong corporate earnings from companies like JPMorgan Chase and Google has also buoyed market sentiment this week.