The price of spot gold rose by 1.4 percent to a record $1,624.30. D.C. dithering drives gold to record high

Gold prices surged to a record high on Monday as concerns about a potential U.S. default on its debt keep investors around the world on edge.

The price of spot gold rose by 1.4 percent earlier Monday to a record $1,624.30 an ounce before falling back a bit later in the day.


The spike in the price of gold is “undoubtedly” based on “fear from traders on concerns about the U.S. Treasuries and the dollar outlook,” Ben Westmore, a commodities economist at National Australia Bank, told Reuters. “At the moment, the U.S. is looking a bit unstable and gold is a pretty good substitute.”

Gold is up close to 14 percent so far this year and has risen in price by close to eight percent since late June.

The U.S. dollar, meanwhile, fell to a four-month low against the yen and also dropped in value against the Swiss franc.