El Salvador president proposes bill to overturn metals mining ban
In 2017, El Salvador became the first country in the world to ban forms of metals mining.
Comex gold and silver futures prices closed the day session higher Monday, with August gold powering to another new all-time record high of $1,624.30 an ounce.
The precious metal was lifted by the breakdown in debt talks in the US over the weekend and news that ratings agency Moody’s has downgraded Greece’s debt again saying default is now almost a certainty.
While the debt crisis in Europe has dragged along for months, the August 2 deadline for a resolution of the political standoff in Washington is fast approaching.
Most investors and analysts believe an 11th hour compromise will be reached avoiding a debt default in the world’s largest economy, but the uncertainty is benefitting gold, a traditional safe-haven and punishing the dollar and stocks. The benchmark Dow Jones Industrial Index ended Monday down 88 points or 0.7% at 12,593.
The gold price remains well below the previous record high for gold set on Jan. 18, 1980 – when adjusted for inflation the precious metal traded at $2,400 an ounce at the time.
Lawmakers in the US spent the weekend trying to negotiate raising the debt limit – a largely technical decision – that has turned into an ideological standoff between the two parties. The Republican-led House of Representatives is holding out for a one-year deal with no tax increases. The Democrats want to see a mix of cuts and higher taxes, along with a deal that will pushes any future debt ceiling negotiations beyond the next election cycle.
December Comex silver last traded up $0.30 at $40.445 an ounce. December silver futures prices closed near mid-range Monday and hit a fresh 11-week high early on. The gold:silver ratio – the number of ounces of silver needed to buy an ounce of gold: eased back below 40.
