Gold hits record price

The price of gold surged to an all-time high point above $1 258 an ounce on Friday, on the back of the weaker US currency and downbeat US economic data, traders said.

In afternoon trading on the London Bullion Market, gold hit a record $1 258,38 an ounce.

“This could open the door to further appreciation towards the $1 300 level in the coming weeks,” said Rajesh Patel, head trader at financial betting firm Spread Co.

“The dollar has been due a fall, what with its strength versus the euro and sterling lately, and a falling dollar pushes gold higher as it makes it cheaper for investors outside the US to buy gold, increasing demand.

“The drop in jobless claims and the manufacturing index yesterday in the US also add to investors concerns.”—AFP