The price of gold leapt to a record peak above 1,070 dollars per ounce here on Wednesday as the dollar slid in value against the European single currency.
On the London Bullion Market, gold struck 1,070.80 dollars an ounce, which was the highest level in history.
The latest peak was forged as the euro surged above 1.49 dollars for the first time since August 2008.
In recent days and weeks, gold has enjoyed a record-breaking run as the tumbling dollar has stimulated demand.
A fading US dollar makes the precious metal cheaper for investors holding other currencies. Gold is used in jewellery, dentistry and electronics
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The dollar slumped to a 14-month low against the euro on Wednesday, pushing the price of gold to a record high and crude oil futures above 75 dollars for the first time in a year.
ReplyDeleteThe euro struck 1.49 dollars -- its highest point since August 2008 -- on increased appetite for currencies seen as riskier than the dollar and on prospects for super-low US interest rates in the face of rising economic confidence, analysts said.
In morning London trade, the European single currency jumped to 1.4913 dollars, which was last seen in August 2008. It later stood at 1.4895 dollars, up from 1.4852 dollars late in New York on Tuesday.
The dollar fell to 89.20 yen from 89.67 on Tuesday.