Gold price hits record above $1,258 an ounce

LONDON (AFP) - The price of gold surged to an all-time high point above 1,258 dollars 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 dollars 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. The new high smashed the previous record of 1,252.11 dollars per ounce that was forged on June 8 as investors sought the safe-haven metal amid mounting concerns about the eurozone debt crisis. Gold, whose two main drivers are jewellery and investment buyers, is viewed as a safe-haven investment in times of economic trouble.

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