US debt concern spurs gold rise

Gold prices hit another record high and the US dollar slipped yesterday in the wake of Moody's warning that the US government may lose its top credit rating. But the outlook for second-quarter US corporate profits improved after JPMorgan Chase's results lifted US stocks, while comments from Federal Reserve chairman Bernanke on Wednesday suggesting further monetary policy stimulus was possible remained supportive. The Dow Jones industrial average was up 49.34 points, or 0.39 per cent, at 12,540.95. The Standard and Poor's 500 Index was up 5.14 points, or 0.39 per cent, at 1,322.86. The Nasdaq Composite Index was up 6.57 points, or 0.23 per cent, at 2,803.49. World stocks were up 0.1 per cent while Japan's Nikkei ended down 0.3 per cent. Still, the US debt-ceiling debate looms large. The US dollar fell against a basket of currencies. The dollar index was last down 0.5 per cent. Both the euro and dollar hit record lows against the Swiss currency as investor demand for the traditional safe haven remained elevated. From / Gulf News