NEW YORK ( TheStreet) -- Gold prices finished the trading session far beyond prior record $1,700 an ounce Tuesday as investors clung to fears about a double-dip recession in the United States after the historic downgrade of the government's credit rating by Standard & Poor's.
Gold futures for December delivery rose $29.80 to settle at $1,743 an ounce after soaring to an all-time high of $1,782.50 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,782.50 and as low as $1,717.70, while the spot gold price rose $13.50 to $1,730.70, according to Kitco's gold index.
Gold prices climbed for the second straight day, lurching higher overnight to touch new all-time highs in a number of currencies including euros, the British pound sterling, the Japanese yen, the Canadian dollar and the Indian rupee.
"The world's capital markets are increasingly concerned that the global economy is heading towards another downturn only three years since the failure of Lehman Brothers and the onset of recession in 32 out of 34 OECD (Organisation for Economic Co-operation and Development) economies," said World Gold Council managing director Marcus Grubb. "Against this backdrop, together with strong Asian gold demand and continued purchasing by central banks, gold continues to demonstrate its attributes as a hedge against credit risk, currency risk and inflation or deflation risk."Although prices later backed off a bit from their overnight rally, Fastmarkets analyst James Moore believed that this was merely be short-term profit-taking. "Much of the demand has been seen in the OTC and ETF
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