Gold Prices Continued To Rise &Nbsp, Hitting $1624.07 Yesterday.

The US Congress failed to reach an agreement on raising the debt ceiling at the weekend, triggering fears that the US government might be in debt, boosting demand for hedge funds, and gold prices rose to record highs yesterday.

By yesterday evening, the price of gold had gone back to 1614 dollars.

Gold traders said investors would pursue gold and other hedge assets until the results of the US congressional consultation were clear; if the US raised the debt ceiling,

Mike Burrowes, a New Zealand Bank's currency strategist, said: "the deficit agreement has not been reached. At least in the short term, the dollar will bear all the pressure."

But if the United States reaches a credible long-term deficit reduction plan, it will pave the way for the dollar to rebound.

Dominic Schnider, director of wealth management research at UBS, said that the US Congress did not reach an agreement on the debt problem, and this uncertainty benefits Shi Deming.

He said,

Moodie, standard & Poor's and Fitch have said that if the United States fails to raise the debt ceiling and cause debt, they will lower the highest credit rating of the United States.

Natalie Robertson, a commodities analyst at Australia's largest bank, said: "the market is paying attention to whether consultations can be resolved or not." Robertson said.

Before that, the market will continue to fluctuate, and the demand for gold hedging will also increase.

According to Wang Tao, analyst at Reuters market, gold may reach $1688 per Annex after four weeks, unless the United States raises its debt.

Wang Yilin, an investment analyst at Singapore Phillips futures, said: "gold still has strong basic elements to attract investors, including concerns over the continuing euro zone debt problem, weakness in the US dollar and increased demand for central banks in emerging economies."

However, some analysts believe that in the context of high gold prices, the pursuit of high gold has become a crazy gamble.

They believe that the European debt crisis and the US debt crisis are the biggest drivers of the gold price surge. With the introduction of the second Greek rescue plan and the approaching of the US debt crisis, these climaxes may also be over. Once these factors are diluted or disappeared, the support power of gold will be greatly reduced.