Precious metal brokers applauded when the price for gold went above US$400 per ounce, according to the Wall Street Journal Americas.
The financial publication said that “for the first time since August 1993, gold has broken through the US$400 barrier.”
Brokers from a New York bank, even opened a bottle of Champagne to celebrate the event.
“What really gave the gold market its final push, says the publication, was the stagnation of the budget negotiations in Washington.
“It is obvious that the White House cannot control the government,” said Mr. Mr. Ian MacDonald, chief of the precious metal department of Credit Suisse in New York.
He added that “with a stock market on a downward trend, there are very few alternatives for investors looking for a sure bet.”
In London, gold bullion broke the US$400 barrier early on Wednesday, for the first time in two and one half years.
“It is good news for the Dominican Republic,” said a former Director of Rosario Dominicana, the country’s state owned gold mine.