Anxiety over US debts remains with constant rise in gold price
With latest price of gold reaching $1594.16 an ounce, it is raising several eyebrows among forecasters of the U.S. economy. The yellow metal got a price hike of 7 per cent as compared what it was at the start of the year. However, it started escalating from the beginning of April and is still showing no signs of coming down.
Lastly, in 1980, there was a huge inflation on gold’s price when it reached up to $873 per ounce, which was a record hike at that time. That last record price hike is equivalent to $2,280 in today’s context, says Chant Vartanian. He believes that the recent inflation is going to break that earlier record very soon.
The result of this recent price hike of gold is not going to be very suitable for the U.S economy, says Chant Vartanian. The value of U.S. dollars is supposed to decrease and thus it will have overall negative impact on U.S. economy. The profit margins for businesses are supposed to come down; and it is also expected that there will less footfalls in jewelry stores in coming years. Although gold will gain its importance as a precious metal, only a few consumers will dare to purchase it in reality.
Chant Vartanian believes that the only way to tackle the situation is to raise the country’s debt limit, which is possible only when will come to common outlook regarding the issue. All the members of the opposing Democrat and Republican parties should come discuss over the matter and come to a conclusion by 2nd August of this year.
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