The price of gold set a record high for a second straight day Wednesday as investors looked for an alternative to a weakening U.S. dollar.
Various unsettling events in the world in the last few months – such as the political unrest in the Middle East and then the earthquake and tsunami in Japan – have pushed some investors to look for what they view as a secure commodity. Increasingly, they have bought gold.
The price went above the $1,500 mark for the first time after the Standard & Poor’s financial services firm on Monday lowered its economic outlook for the United States from “stable” to “negative” on fears that the country’s leaders will not be able to reach a deal to rein in the growing U.S. governmental debt.
Some analysts say the price of gold could increase further. Investors have also bought another much cheaper commodity: silver. It has risen to more than $44 an ounce – a three-decade high.