Gold hits fresh record high

7th April 2011, Comments 0 comments

Gold hit fresh record highs Thursday driven by a toxic mixture of concerns over unrest in the Middle East and North Africa, a weak dollar, rising oil prices and inflation and Portugal's debt crisis.

The precious metal touched $1,464.93 an ounce at 1400 GMT on the London Bullion Market, extending this week's record run.

"Gold continues to draw support from the ongoing geopolitical uncertainty across the MENA region, dollar weakness, elevated oil prices (and) concerns over inflation," said Barclays Capital analyst Suki Cooper in a note.

"Adding fuel to the fire ... was Portugal's request for financing from the European Union."

At the same time, gold's sister metal silver struck 31-year highs of $39.69 an ounce.

Gold, whose two main drivers are jewellery and investment buyers, is widely regarded as a safe haven in times of economic and political uncertainty.

© 2011 AFP

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