Gold price hits record high above 1,239 dollars an ounce

12th May 2010, Comments 0 comments

Gold prices struck a record peak above 1,239 dollars an ounce here on Wednesday, with demand driven by investors seeking a safe-haven investment amid the eurozone debt crisis.

The glamorous precious metal soared as high as 1,239.32 dollars at 0910 GMT on the London Bullion Market.

"Persisting worries that the debt crisis in the eurozone could spill over to other countries -- despite the EU's 750-billion-euro aid package -- and thus contribute to a destabilisation of the financial system are driving investors to the yellow metal," said Commerzbank analyst Carsten Fritsch.

Heightened concerns about the risk of contagion from Greece's debt woes have attracted fresh inflows of cash into gold, which is widely regarded as a safe bet in times of economic uncertainty.

© 2010 AFP

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