Gold rise to record above 1,420 dollars an ounce

9th November 2010, Comments 0 comments

Gold surged to a record high Tuesday, rising above the 1,420-dollar-an-ounce threshold for the first time as investors sought protection against inflation.

Gold hit 1,424.35 dollars a day after breaking through 1,400 dollars an ounce.

The precious metal was boosted by its status as a refuge asset, seen by investors as a hedge against inflation and currency volatility at a time of economic uncertainty.

Inflation fears have recently been fueled by a US Federal Reserve decision to spend 600 billion dollars (422.5 billion euros) to buy US Treasury securities and other assets.

The move is a bold bid by the US central bank to galvanize the US recovery by making extra funds available to lenders and thereby lowering long-term interest rates.

© 2010 AFP

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