LONDON - THE price of gold soared on Wednesday close to a record peak above 1,000 dollars as investors turned to the precious metal by the tumbling US currency, analysts said.
The precious metal hit US$1,022.72 (S$1,443.51) an ounce on the London Bullion Market, the highest level since March 2008 when it had struck a record US$1,032.70.
'Gold remained strong in early European trading and hit a new high for the year as euro/dollar broke through 1.4700,' said UBS analyst John Reade.
The European single currency struck a new nine-month peak at 1.4714 dollars as investors snapped up riskier assets amid mounting hopes of a global economic recovery.
Market action came after US Federal Reserve chairman Ben Bernanke said that recession in the United States 'is very likely over'.
A struggling US unit makes dollar-priced gold cheaper for holders of stronger currencies, and therefore tends to boost demand. -- AFP
Wednesday 16 September 2009
Gold close to record high
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