Gold surges to fresh high as investors seek safety

City A.M. Reporter
Gold hit record highs above $1,270 an ounce yesterday in its biggest one-day rally in four months, as the US dollar declined broadly after upbeat data failed to convince investors to shift into risk-linked assets.

Gold is now on course for a 15 per cent gain in 2010, fuelled largely by investor nervousness that stemmed from the fallout from the Eurozone debt crisis and from economic data that has suggested global economic growth may be losing momentum.

Spot gold was at $1,269.65 an ounce by mid-afternoon, up from $1,245.25 the day before, having hit a record high of $1,271.20 earlier in the session. US gold futures for December delivery were last up $24.3 an ounce at $1,271.20.

“It’s continuing the trends that we’ve seen through this year,” said Tom Kendall at Credit Suisse.