Rush for safety sees gold surge

PRICES of spot gold notched a record high yesterday while Brent crude ended above $122 a barrel, at a 2-1/2 year high, as Middle East unrest and fears over Portugal fuelled a drive for safety.

Brent crude prices rose as worries about supply from oil-producing countries in Africa and the Middle East overshadowed China’s rate hike. Brent futures settled up $1.16 at $122.22 a barrel, while US crude futures were down 32 cents at $108.15. The oil price rise fed inflation fears, supporting gold prices. Spot gold rose to above $1,450 an ounce.