GOLD PRICES

Bullion roared to a record on Monday above $1,700 an ounce as an unprecedented downgrade to the U.S. credit rating sent investors scrambling out of riskier assets, hammering equity markets and the dollar.

Gold held firm after upbeat U.S. labor market data soothed immediate fears of a recession, but longer-term uncertainty about economic growth and concerns about the euro zone debt crisis supported demand for the precious metal.

Investors fled U.S. stocks and dumped commodities on Thursday, rushing to the safety of government bonds on growing fears the global economy was weakening.

World stock markets fell for the eighth straight session on Friday to the lowest since late 2010, with more losses feared if policymakers do not come to the rescue soon to stabilize the euro zone's debt crisis and prevent the U.S. economy from sliding back into recession.

Hedge fund titan John Paulson's flagship funds performed poorly in July and sank further into the red for the year.

Gold fell more than 1 percent on Monday after President Barack Obama said lawmakers had reached a deal to cut the country's deficit, which, if approved, would remove the threat of a default on debt that has driven bullion to a record high.

South Africa's rand slipped on Thursday after posting strong gains this week, while bond prices fell on concerns over the U.S. debt standoff and stocks fell for the fourth straight day.

Some 100,000 South African gold miners went on strike on Thursday, but fuel workers ended a stoppage that had slowed commerce and caused panic buying.

Gold prices rose to an all-time record in New York to touch $1623.70 as investors weighed in the possibility of a debt default in the U.S.

Gold prices hit a record high at more than $1,623 an ounce and Asian stock markets were largely flat, as news out of Washington indicated politicians were making little progress in ending the deadlock over lifting the U.S. debt ceiling.

Gold held steady on Tuesday after the last session's record high, as investors stayed on the sidelines, watching the stalemate in Washington's budget talks to avert a ratings downgrade or default.

Another impasse at the U.S. debt ceiling talks caused gold to touch new highs on Monday. Spot gold rose to a record $1,622.49 per ounce, an increase of 1.1 percent, as investors became nervous about the possibility of a U.S. rating downgrade. There are analysts who believe that irrespective of whether there will be a debt deal in the U.S. or not, gold will continue to rise higher, basically because of the residual weakness of the dollar.

Stocks fell on Monday as continued political sparring in Washington over the debt ceiling heightened worries of a U.S. rating downgrade, sending world equities lower.

Toronto's main stock index looked set to open lower on Monday, hurt by news of major job cuts at Research In Motion Ltd (RIM.TO: Quote) and an impasse in U.S. debt ceiling talks that fueled worries of a U.S. default.

Spot gold prices touched a new record high of $1598.41 on Monday, extending the longest rally in about 40 years. The latest wind in the tail came from worsening worries of a European sovereign crisis and the painful stalemate in the US debt ceiling talks that has raised the specter of an unprecedented Treasury default.

Silver has lost its shine of late as fears of another global economic slowdown reduced its appeal as an industrial metal. Silver fell from the record prices it set a couple of months back to hover around $35 per ounce. However, optimists are speculating that silver will bounce back once again and cross the $100 record. There are even experts who fancy silver's price parity with gold!

Gold is trading at $1,500, an important psychological level and near the all-time nominal high. Whether or not gold will go to new heights largely depends on monetary policy, according to some experts.

Gold Prices go up when cash and bonds fail to beat inflation. It was true in the 1970s, and it's been true again in the last decade. But now, from here, what will Gold Prices do?

Gold prices may continue to stay at high levels in the coming months as investors seek the metal as a safe haven investment on concerns about faster inflation, slowing global economic recovery and geopolitical crisis, according to China National Gold Group Corporation (CNGGC).

In less than 90 days, the debt crisis in Europe drove gold up more than 17.5% in 2010. If gold were to repeat the same pattern we saw last year, we could tack on 17%+ from today’s prices, putting the metal at over $1780 per ounce.

Gold Prices at Tuesday morning's London Fix hit record Euro and Pound Sterling highs - €1078.85 and £942.22 per ounce respectively. The US Dollar ticked lower after a Federal Reserve official suggested monetary policy may remain loose for an extended period.