Gold hits record on speculation

Friday, 15 April 2011 08:52

Gold hits record on speculation that the ongoing crisis in Europe will worsen, enhancing its appeal as an alternative to currencies. Silver touched a 31-year high as well.

The price of gold reached an all-time high of $1,486.40 an ounce after Moody’s cut Ireland’s credit rating to almost junk putting pressure on the euro. The dollar was stronger today yet is headed for the third straight weekly decline as Congress debates measures to reduce government deficit.

Gold futures for June delivery rose $13.60, or 0.9 % to $1,486 on the Comex. Gold for immediate delivery in London rose to a record $1,485.57.

Silver topped $42 and silver futures for May delivery rose $1.066, or 2.6 % to $42.73 an ounce, the price rose to $42.755 at one point the highest level since 1980.