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.