Atlantic International Partnership Headlines: Gold hits record high on debt fears and chance of more Fed stimulus

http://blog.atlanticinternationalpartnership-headlines.com/2011/07/atlantic-international-partnership-headlines-gold-hits-record-high-on-debt-fears-and-chance-of-more-fed-stimulus/

Gold closed at a record high Tuesday, surpassing its previous high set in May, as some investors ran back to the classic haven amid global financial markets’ latest turmoil.

The metal also got a boost as the minutes of the Federal Reserve’s last meeting showed some policymakers were willing to push for a new monetary stimulus program if the economy failed to show significant job growth.

That could mean a resumption of the Fed’s bond-buying program, which critics say has helped fuel inflation, particularly in commodities. Fears of higher inflation often drive more investors to gold as a hedge.

The Fed is “thinking about more free money,” said Frank Lesh, a commodities analyst at FuturePath Trading in Chicago. “The first place it goes is into the markets.”

Gold jumped $13.10 to $1,561.90 an ounce in the regular futures trading session in New York. That topped the old closing high of $1,556.70 on May 2.

The metal’s price now is up 9.9% year to date — more than twice the price gain of the Standard & Poor’s 500 stock index — and is on track for its 11th straight annual increase.