Gold hit another record high on Friday

Friday, 15 April 2011 09:36

Gold hit another record high on Friday after the dollar fell against a basket of major currencies also taking silver to a 31-year high, while inflation pressures in China also helped lift bullion's appeal.

Spot gold was steady at $1,476.75 having hit a record high of $1,479.01, gold futures for June rose as high as $1,480.5 an ounce. Continual inflationary issues increased physical demand from China has been one of the driving forces.

Spot silver rose as high as $42.41 an ounce, its strongest since 1980.

The dollar dropped to its lowest in more than a year, under pressure from expectations the Fed will not cut short its $600 billion debt-buying programme despite the recent surge in oil prices.

US consumer price inflation numbers due at 1:30 p.m. UK time and may show signs that inflation may be rising faster than the Fed may expect.