Fri, 19 Aug 2011 8:24
Iafrica.com - http://business.iafrica.com/news/747607.html
The spot price of gold hit a new record high of US$1826.84 a troy ounce as global growth concerns encouraged fresh investment in the yellow metal, widely viewed as a safe haven amid economic uncertainty.
The latest flight to gold as a safe haven asset was fuelled by a slump in global equity markets and weak US economic reports.
Dow Jones Newswires reported that European equity markets plunged sharply Thursday, with the financial sector hit particularly hard as investors worried that recent weak economic data could be a harbinger of renewed recession in the developed world. U.S. stock markets opened sharply lower after separate reports showed that the number of people claiming new jobless benefits rose last week and consumer inflation resumed its climb last month.
"These problems in Europe and the U.S. aren't going to go away any time soon," said Bill O'Neill, a principal with Logic Advisors. "It's making gold and Treasuries the favourite investment vehicles."
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