A sheer downturn penetrated in the U.S. markets after a prominent credit downgrade came from S&P for the nation. The decision triggered an atmosphere of uncertainty that resulted in a massive sell-off in global equity markets and an investor switch to metal heavens to guard against losses. This hefty move took gold prices to another record high on Tuesday soaring above $1,750 per ounce. The massive price increment for gold has occurred in time when other asset classes experienced sheer losses on escalating worries about U.S. and euro-zone sovereign-debt problems. In addition to the Wall Street worries, the ordinary Americans are also under stress on the questions like how to handle their retirement nest eggs, children’s college funds, along with any other cash or other investments they may have. In the Asian markets as well, the global sell-off continued with markets around the region drowning at the early trading session as investors briskly moved for safety. Gold futures for December delivery hiked 2.3%, or $39.60, to $1,752.80 an ounce in Asian afternoon trading. In earlier session the contract hit a record of $1,774.80 an ounce, and has now surged, just for 2011, more than 23%, including a gain in excess of 6% just this week. Following the similar pattern, spot gold hit a high of $1,773.40 before moving back to $1,749.10 an ounce, still ahead $31.90 from its U.S. settlement price overnight. As a proposed effort to calm down the gold and equity markets, the U.S. Federal Open Market Committee has planned a meeting on Tuesday to decide on its monetary policy. The committee will follow a debate over whether weakening economic indicators will force its hand in launching a fresh round of monetary easing.

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