July 27, 2011
Gold forged a record high above $1,625 per ounce here on Wednesday, as investors parked their cash in the precious metal in the face of heightened concerns over a potential US default.
The price of gold struck $1,625.70 an ounce at about 0600 GMT on the London Bullion Market, beating the previous record of $1,624.07 that was hit on Monday.
“The threat of default by the world largest economy has led gold to a fresh peak above $1,625 this morning,” said FastMarkets analyst James Moore.
“The metal looks set to extend towards $1,650 in the coming sessions as investors seek to diversify into more tangible assets as confidence in paper assets, even government-backed, dwindles.”