ABJ - August 8 - The price of gold surged above $1,700/troy ounce, setting a new record, as concerns over European debt and the downgrading of the U.S. credit-rating sent markets and investors towards to perceived safety of the metal.

According to Reuters, “Spot gold was set for a second consecutive trading rally, up 2.5 percent from Friday at $1,704.19 an ounce by 7:35 a.m. EDT, having hit a record $1,715.01 earlier and having traded at all-time highs in sterling and euros.

Treasury Secretary Timothy Geithner said U.S. Treasury debt is as safe as it was before the S&P downgrade, urging European leaders to ensure there is an "unequivocal financial backstop" for euro zone governments facing fiscal and debt problems.

Investors are watching for any statement on whether the Fed will ease monetary policy further. The Fed's $600 billion quantitative easing program, which ended in June this year, has been instrumental gold's rise, even if adjusted for inflation, the bullion price remains well below the all-time highs above $2,000 in the early 1980s.”