Gold declined today as investors were taking profits after the yellow metal’s latest record surge, however, the prices remained near the all time high of nearly US$1,499/oz it hit yesterday. The prices were driven by strong safe haven demand, which got a boost from a downward revision of the outlook for US debt by Standard & Poor’s, which cut it from stable to negative on Monday. This means that the US could lose its AAA credit rating if the Congress fails to agree on a budget reduction plan within the next two years. Prices were under pressure from a stronger US dollar, which is seen as an alternative asset to gold. The American currency rose as the euro slipped on fears that Greece could default on its debt. Gold last traded at US$1,493/oz. Silver and platinum followed, dropping to US$43.18/oz and US$1,777/oz respectively. Mining majors were in demand today. Fresnillo (LON:FRES), Lonmin (LON:LMI) and Randgold Resources (LON:RRS) added 3 percent, 2 percent and 1 percent respectively. In the FTSE 250, Petropavlovsk (LON:POG) advanced 2.7 percent, while other midcaps posted small gains. Notable risers included gold and silver explorer Patagonia Gold (LON:PGD), which rose 6 percent.

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