New York investors rose gold prices to over USD 1,500 an ounce on Tuesday, which later settled at USD 1,495.10 an ounce on Wednesday, Reuters reported.
Only a week before the massive price hike, gold was dealt at USD 1,476.21 an ounce in New York.
Also, silver surged to a 31-year high for the fifth consecutive session, and closed at USD 44.25 an ounce.
Gold has climbed 32 percent in price during the past year, while silver prices have more than doubled.
The increase in gold and silver prices comes as the dollar index is steadily falling down, motivating investors to find an alternative in order to evade a falling currency.
The global distrust in dollar indicates that the US economy is edging closer to collapse.
On Monday, the rating agency Standard & Poor’s (S&P’s) warned that America is on the verge of losing its triple-A credit rating.
The blunt warning by S&P’s is among the first signs of a “sudden and violent crack in dollar,” Rodney Shakespeare, London-based professor of Binary Economics, told Press TV.
He noted that “a great collapse of the American economy” is expected in the near future.
This is while Washington grapples with a massive budget deficit, rising unemployment rates and a debt crisis, which have jeopardized the US economy
In an interview with Bloomberg on Sunday, Nobel Prize winning economist Joseph Stiglitz said that a “global system” is needed to replace the dollar as a reserve currency and help avoid a weakening of US credit quality.
“By taking off the burden of any single country, we don’t have to have trade deficits,” the Columbia University professor pointed out.
“Things would be much worse if it were not the case that Europe was having even more of a problem, but winning a negative beauty pageant is not the way to create a strong economy.”
“The likelihood of the US government failing to honor its financial obligations and in particular make due and full payments on US Treasury securities is extremely low,” according to the international Fitch Ratings agency.
Americans appear to be growing nervous, and that unease could take an economic toll.
Consumer sentiment fell in March to its lowest level since November 2009. With oil prices rising, Americans’ confidence in the economic recovery has taken a sudden plunge.
The financial and psychological strains appear to be encouraging Americans to cut back. Already, one in every three consumers has cut spending due to rising prices.