Gold price hits record high above $1,217
Wednesday, 2 December 2009 11:52The price of gold struck a record high level above $1,217 an ounce in trading in London this morning as the US currency weakened against the euro.
Gold hit a new high of $1,217.23 on the London Bullion Market, just a day after breaking through the $1,200 barrier for the first time. After reaching the new high, gold pulled back lightly to trade at $1,207.82 by mid-morning.
Gold has smashed record after record over recent days and weeks on the back of inflationary fears and increasing moves by central banks to diversify assets away from the dollar, which has weakened against the European single currency.
The precious yellow metal, whose two main drivers are jewellery and investment buyers, has also won favour in the uncertain economic climate which has been fuelled by Dubai's debt crisis. Gold is traditionally viewed as a safe-haven investment.
The price of gold has soared by more than 55% in value over the past 12 months. They have won support from recent central bank purchases of the metal.
The International Monetary Fund last week announced it had sold 10 tonnes of gold to Sri Lanka's central bank for $375m as part of a restructuring of its financial resources. The record run for gold comes also after a recent newspaper report that India was mulling the purchase of more IMF gold reserves.
