Gold price rises close to record high

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The price of gold climbed close to its record high on Wednesday with the precious metal boosted by its safe-haven status.

Gold hit a two-month high of 1,254.31 dollars an ounce on the London Bullion Market compared with 1,246 dollars late on Tuesday.

The precious metal had forged a record 1,265.30 dollars per ounce on June 21, propelled partly by concerns over the poor economic climate, before falling back.

"The rally from the late July lows of 1,160 dollars has been very powerful and it does look like the market is intent on taking out the previous highs," said Rajesh Patel, head trader at Spread Co in London.

"With reports of hedge fund managers increasing their holdings in the precious metal we still maintain our target of 1,300 dollars before the end of the year."

© 2010 AFP

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