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Tuesday, January 22nd, 2019 - Buy Gold - Bringing you trusted gold news and gold investing information since 2006

Gold Breaks $1,600 for First Time in History

Gold Price went through the $1,600 (£995) an ounce mark for the first time in history,  mostly because of tensions about the eurozone debt crisis and the US debt ceiling.

And it was not just gold: Silver gained 2% to $40.11 an ounce, its highest since early May, as stock markets fell across Europe.

At $1600.40 an ounce, gold has risen by nearly 8% since the beginning  of July. Economists believe it will keep climbing and could possibly hike very sharply, should the eurozone issues become more crucial, or the US fail to rise their debt ceiling, both events which would fuel a rush to safe havens such as gold and silver.

“If people seriously thought that there was a good chance that the euro itself would not survive, the associated flight to the safety of gold could easily see prices surge well above $2,000,” said analysts at Capital Economics, who predict that gold will pass though the $2,000 mark in 2012.

“If an actual break-up were imminent, we would pencil in a much higher figure. The fallout from a temporary default by the US government would be less serious, although it would probably see gold prices spike higher, too.”

Another fact that could hint at additional bullish price movements is that gold is still quite some distance from its record high in real terms, adjusted to inflation: the precious metal traded at $835 pan ounce in January 1980 – the equivalent of about $2,400 now – when investors sought protection from double-digit inflation.

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