Gold traded about $10 higher to $1,670 per ounce in overnight Hong Kong and electronic trading and was moving within the $1,660-to-$1,670 range in late London, early New York trading Wednesday. Yesterday was an extraordinary day in the gold market: Spot gold climbed strongly and steadily from $1,620 to finish the day just shy of $1,660 only 24 hours later — another nominal record high.

Signs of weakening activity in major economies around the world, new cuts in government spending as a result of the U.S. debt ceiling compromise, the end of QE2 monetary stimulus and persisting issues with debt loads and credit quality make for a precarious economic environment. All that’s conspiring to drive capital into the precious metals and other perceived safe havens.

Will recent fiscal and monetary policy decisions in the world’s major economies push the global economy over the edge and into another recession? Besides the new U.S. budget cuts, the European Union has imposed austerity packages on its weaker members, Japan is battling to recover from the Fukushima earthquake and tsunami, and China is battling to control inflation, as are other leading emerging markets, such as Brazil.

Whatever is left of the bill from the excessive spending and debt creation, easy monetary and fiscal policies and lax regulation in the run-up to the Great Recession may be coming due. Gold and silver investors certainly have something to lift their spirits, as well as their economic fortunes. But oh, the bitter irony.

Spot gold was trading at 1,669.60 Bid, $1,670 Ask early Wednesday in N.Y., having been set at $1,669.25 at the London PM fix. Spot silver was trading at $41.73 Bid, $41.83 Ask, having been set at $41.04 in the London AM, according to Kitco market data.

Looking at early Wednesday exchange trading, gold trusts were moving higher while the iShares Silver Trust was trading more than 2% higher for the second day running.

• The SPDR Gold Trust (NYSE:GLD) was up more than 0.6%.
• The iShares Gold Trust (NYSE:IAU) also was up more than 0.6%.
• The iShares Silver Trust (NYSE:SLV) was up more than 2%.

Gold and silver mining ETFs also were trading higher early Wednesday.

• The Market Vectors Gold Miners ETF (NYSE:GDX) was up nearly 1.5%.
• The Market Vector Junior Gold Miners ETF (NYSE:GDXJ) was around 1.4% higher.
• The Global X Silver Miners ETF (NYSE:SIL) was trading nearly 2.3% higher.

Shares of gold miners were strong, with several up around 2% or more.

• Agnico Eagle Mines (USA) (NYSE:AEM) was more than 1% higher.
• Barrick Gold Corp. (NYSE:ABX) was up 2.15%.
• Goldcorp (NYSE:GG) was nearly 2% higher.
• Newmont Mining Corp. (NYSE:NEM) was up more than 2%.
• NovaGold Resources (USA) (AMEX:NG) was up just 0.1%.

Silver mining shares were moving sharply higher for the second consecutive day.

• Coeur D’Alene Mines Corp. (NYSE:CDE) was more than 1.5% higher.
• Hecla Mining (NYSE:HL) was up more than 2.2%.
• Pan American Silver Corp. (USA) (NASDAQ:PAAS) was nearly 2.5% higher.
• Silver Wheaton Corp. (USA) (NYSE:SLW) was up more than 3%.
• Silver Standard Resources Inc. (USA) (NASDAQ:SSRI) was up nearly 2.5%.

The author does not hold positions in any of the above-mentioned investments.