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Breaking News English .com, Price of Gold Hits All-Time High (23rd August, 2011)

The price of gold went past the $1,900 per ounce mark for the first time ever on Monday. The record rise is because of growing concerns about a possible recession in the global economy. Two main factors are driving fears of a worldwide economic slowdown – the faltering U.S. economy and the debt crisis in Europe. Investors have traditionally put their money in gold during times of financial uncertainty. They see it as a safe investment. This saw the price of gold rise to $1,913 an ounce in Singapore before settling down to $1,897 an ounce at the close of trading. Industry experts believe gold prices could rise even further as more economic gloom makes investors increasingly nervous.

Analysts say that speculation that the US government may announce new stimulus measures is also increasing the price of gold. America's Federal Reserve may have to print more money to boost America's economy, which could see the US currency weaken. A weakened dollar drives up gold prices. Analyst Colin Whitehead explained: "The underlying driver of gold prices is the depreciating US dollar value, so the more money they print, the stronger gold gets." Another economist, Peter Richardson of Morgan Stanley, suggested market factors had little impact on gold. He said: “Gold has continued to blast ahead even with a relatively strengthening U.S. dollar, strongly performing treasuries and other safe havens.”

Classroom handouts, online activities and a listening for this article are at

http://www.breakingnewsenglish.com/1108/110823-gold_prices.html



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The price of gold went past the $1,900 per ounce mark for the first time ever on Monday. The record rise is because of growing concerns about a possible recession in the global economy. Two main factors are driving fears of a worldwide economic slowdown – the faltering U.S. economy and the debt crisis in Europe. Investors have traditionally put their money in gold during times of financial uncertainty. They see it as a safe investment. This saw the price of gold rise to $1,913 an ounce in Singapore before settling down to $1,897 an ounce at the close of trading. Industry experts believe gold prices could rise even further as more economic gloom makes investors increasingly nervous.

Analysts say that speculation that the US government may announce new stimulus measures is also increasing the price of gold. America's Federal Reserve may have to print more money to boost America's economy, which could see the US currency weaken. A weakened dollar drives up gold prices. Analyst Colin Whitehead explained: "The underlying driver of gold prices is the depreciating US dollar value, so the more money they print, the stronger gold gets." Another economist, Peter Richardson of Morgan Stanley, suggested market factors had little impact on gold. He said: “Gold has continued to blast ahead even with a relatively strengthening U.S. dollar, strongly performing treasuries and other safe havens.”

Classroom handouts, online activities and a listening for this article are at

http://www.breakingnewsenglish.com/1108/110823-gold_prices.html


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