Moody’s Credit Warning Causes Gold To Rise

Reuters reported the rise in the price of gold to a near six-month high, as a warning on U.S. credit by Moody’s Investor Service caused the dollar to fall.

As quoted in the report:

The metal received a boost after credit rating agency Moody’s said the United States may lose its “triple-A” debt rating if next year’s budget negotiations do not produce policies that decrease debt.

Anthony Neglia, president of Tower Trading and a COMEX gold options floor trader, commented:

Every piece of bad news seems to be good for gold, only because it translates into something that the Fed has to do to get this economy off the ground.

Click here to read the full Reuters report.