WINDERMERE, Fla. ( Stockpickr) -- Gold is hitting a record high above $1,580 an ounce in early trading Wednesday, with market players fearing that the worst could still be in store for the eurozone debt crisis.
Traders are concerned that a major debt default could occur at any time out of Greece, Spain, Italy, Portugal or Ireland. The big fear is that Italy could be in serious trouble, and a default there would be catastrophic because many analysts believe that Italy is too big to fail or that there just isn't enough money to in Europe to bail the country out. Remember, Italy doesn't have a printing press like the U.S. does through our Federal Reserve.
The problems in the eurozone aren't the only catalyst that's helping gold continue to catch a bid from bullish traders. The ongoing saga in Congress over the debt ceiling is another major political event that's keeping buyers swarming back to the yellow metal. The longer that the Democrats and Republicans fight in Congress over of the debt ceiling, then the longer that gold is going to look like an attractive hedge to traders.
Related: 5 Stocks Insiders Are Snapping UpAnd if all of that wasn't enough to make gold bulls happy, we now have hints from the Federal Reserve that the possibility of a third round of quantitative easing is back on the table. During the latest FOMC minutes released on Tuesday, a number of Fed policymakers hinted that they'd be willing to consider QE3 if inflation dropped and unemployment stayed high. Nothing will be more bullish for gold than QE3, simply because the Fed will have no choice but to debase the dollar and print huge amounts of greenbacks. By flooding the markets with more dollars, the Fed will increase the risk of a dollar crisis at some point in the future. All that would have to happen to spark a dollar crisis is for foreign investors to dump large amounts of our debt, which is dollar-denominated. With all of this in mind, it's time to look at some gold miner stocks that could benefit from another round of quantitative easing from the Fed.