Rise in gold prices reflects declining confidence in US economy - analysts

Rise in gold prices reflects declining confidence in US economy - analysts

During Wednesday trading, exchange prices for gold and silver rose above $5,100 and $90 per troy ounce, respectively.

"The inability to fulfill budgetary obligations, the need to inflate away a debt, default in any form, or sharp tax increase is politically unacceptable. For the entire world this risks triggering the destabilization of the financial system, and we are already observing the reflection of growing disbelief in the credit quality of the US in gold and silver prices," chief economist of the global credit rating agency Expert RA Anton Tabakh stated.

Rising gold prices are an alarming sign for the dollar, signaling a desire to invest in the more reliable asset, Russia's State Duma Deputy Alexander Tolmachev said, adding that the US national debt threatens economic collapse, pushing to replace the dollar as the world's currency.

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