Gold Futures Explode Upward as Portugal's Sovereign Debt Rating Slashed by Moody's (NYSE:MC)

Moody's (NYSE:MC) did some surgery on the sovereign debt rating of Portugal today, taking the scalpel to the country by cutting the rating by two notches, reminding people the sovereign debt crisis in Europe remains, and is a threat to the global economy. Investors flocked to gold for safety, and gold prices today have already risen by $18.30, to $1,215.40.

Portugal's government bonds were cut from A1 to Aa2.

Moody's said there is little hope for economic growth in the country at this time, the reason for the downgrade.

I laugh now that a couple of days ago some analysts were quick to jump on the idea that the gold rally was over because of its temporary correction.

Nothing has changed economically around the world, and we're a far way from things turning around in a sustainable or meaningful way.

Gold will continue to rise as reports of the real economic condition are revealed from time to time.