Gold sets a new historical record amid double-dip recession concerns

Gold surged today to set a new historical record at $1672.85 per ounce, extending the gains recorded in the past session, after U.S. lawmakers have finally voted to raise the debt ceiling, but still, jitters and fears are dominating the market in the current time due to the downbeat growth outlook, where the world's largest economies reported a slowing pace of growth close to contraction, which raised concerns of another recession phase.

Spot gold inclined today resuming the upside journey after the huge gains recorded yesterday, setting a new historical record at the high of $1672.85 per ounce after the opening of $1660.75, in addition, the metal recorded the low of $1651.75 and is currently hovering around $1667.50 per ounce.

The shiny metal gained big time on the European debt crisis and the U.S. debt-ceiling concerns, however at the current time, the shiny metal is affected by the lack of confidence and the fears that the global economy is slowing down and could enter into another recession.

Yesterday, raising the debt-ceiling plan went to the Senate for a final vote, where lawmakers have reached an agreement and voted to pass the plan of raising the current debt ceiling of $14.3 trillion and to apply new measures in order to cut the budget deficit during the coming 10 years; however, the shiny metal's appeal as a safe haven has also surged after the softened jitters regarding U.S. default due to the rising concerns that the global economy has lost its upside momentum and is reversing down with a slower pace of growth.

Moreover, rating agencies have affirmed the triple AAA's credit rating of the world's largest economy, yet warned that if this plan shall weaken the U.S. economy and in case lawmakers have failed to apply some debt reduction measures, the agencies will negatively act and downgrade the U.S. credit rating.

Among other precious metals, silver has also extended the huge gains recorded in the past session, after the opening of $40.77 per ounce, to record the high of $41.37 and the low of $40.52, and is currently trading around $40.97 per ounce. Platinum trades now at $1792.00 per ounce, after recording the high of $1806.00 and the low of $1788.00 per ounce.