Gold reaches record high

GOLD hit a record dollar high above $1,250 an ounce yesterday and new peaks in other currencies as concern over Europe’s economic outlook lifted risk aversion, knocking stock markets lower for a third session.

Fears grew over prospects for a European economic recovery after ratings agency Fitch warned the UK faced a “formidable” challenge in plans to cut government borrowing.

Spot gold rose as high as $1,251.20 an ounce. US gold futures for August delivery hit a record $1,254.50. Euro-priced gold also hit a record €1,050.86 an ounce, while gold priced in sterling and Swiss francs hit all-time highs of £870.63 an ounce and 1,450.40 francs an ounce respectively.

The precious metal, up around 12 per cent in the latest quarter, is benefiting from Eurozone debt fears.