G20 pledge helps push gold to new high
Monday, 9 November 2009 17:34Gold prices hit a fresh record above $1,100 this lunchtime after a pledge by G20 countries to keep economic recovery pumped up with emergency stimulus measures.
In London, gold struck an all-time peak of $1,111.20 an ounce. The move came as the euro earlier rose to $1.50 for the first time in two weeks. The gold price on the London Bullion Market later closed at $ 1,106.75.
The International Monetary Fund also said on Saturday that emergency stimulus measures must remain to avoid endangering an emerging economic recovery.
Last week, the US Federal Reserve decided to hold rock-bottom US interest rates for 'an extended period' and to keep trillion-dollar stimulus measures in place to support the US's fragile recovery from recession.
The precious metal had on Friday reached above $1,100 for the first time, following news that Sri Lanka had joined India in purchasing gold in favour of the US currency. The IMF last week said it had carried out a massive sale of the precious metal to India.
