(Reuters) – Gold prices rallied to a record high $1,497.20 an ounce on Monday after Standard & Poor’s downgraded its credit outlook for the United States and as investors worried about debt in the euro zone and inflation in China.
S&P said it might cut its long-term rating on the United States within two years, prompting investors to buy gold as a hedge against economic uncertainty. The ratings agency cited a risk that policymakers may not reach agreement on a plan to slash the huge federal budget deficit.
