Gold price hits all-time high

Source: Reuters, 26 July 2011

Gold prices rose to a record high of above $1,625 on Wednesday, with silver and palladium also rallying, as concerns over the prospect of a U.S. default prompted investors to buy precious metals as a haven from risk.

Failure to lift the debt ceiling by August 2 could trigger a debt default, while a budget plan that flinches from hefty cuts in the deficit could result in a downgrade of the country's top-notch credit rating, analysts said. Spot gold hit a fresh record high of $1,628 an ounce and was up 0.3 percent at $1,623.36.