Gold hits record high near $1,500

18th April 2011, Comments 0 comments

The price of gold struck a record high just short of $1,500 Monday after ratings agency Standard & Poor's revised its outlook on US sovereign debt to "negative" from "stable."

The precious metal, a traditional safehaven store of value in troubled times, reached $1,497.23 an ounce on the London Bullion Market, before easing back.

S&P "has caused consternation in almost every asset class from currencies to commodities to indices," said Ian O'Sullivan, analyst at trading group Spread Co.

US stocks opened sharply lower after the ratings agency issued the warning on US sovereign debt, citing Washington's huge debt and fiscal deficit.

© 2011 AFP

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