Gold hits record high as global inflation spikes

15th April 2011, Comments 0 comments

The price of gold reached a record high above $1,480 Friday with investors piling into the safe-haven precious metal as global inflation spiked higher and eurozone debt worries resurfaced.

Gold hit $1,483.38 an ounce on the London Bullion Market, building on a series of records through the week.

"It seems investors are still more concerned about the threat of debt-default by peripheral EU nations and rising inflation indicators following higher-than-forecast inflation readings from India and China," said James Moore, analyst at research group Fast Markets.

The record came after China said its inflation hit a 32-month high, suggesting Beijing's efforts to rein in soaring costs are still falling short.

The consumer price index rose 5.4 percent year-on-year in March -- the fastest pace since July 2008 and well above Beijing's 2011 target of four percent -- and 5.0 percent in the first quarter.

Manwhile showed India's inflation rate unexpectedly accelerated in March, raising pressure on the central bank for a further hike in interest rates, while prices rose 2.7 percent last month in the eurozone.

Finally, the US consumer price index rose by 0.5 percent in March, official data showed Friday.

Gold is a traditional safehaven store of value in troubled times.

© 2011 AFP

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