Gold touches record high of $1,239 per ounce
12 May 2010
Gold prices reached a record high above $1,239 an ounce today, as investors bought the yellow metal amidst fears the prevailing eurozone financial crisis.
Heightened concerns about Greece have attracted fresh inflows of cash into gold.
The rush for the yellow metal is due to the uncertainty of the debt crisis that may percolate to other countries resulting in investors pulling out of the stock market to invest in gold which has been always considered a safe haven investment in any global crisis.
The increased demand for gold is as a result of investors not satisfied with the bailout package and the ambiguity of the current phase of the crisis, which can trigger additional problems.
Some analysts are of the view that higher gold prices points towards investors remaining doubtful over the bail out package.
The other opinion is that this bail out is not a long term solution to the deficit woes within the eurozone.
Gold has risen even in the last global financial crisis as investors rushed to buy the yellow metal on fears of the uncertainty of the impact of the crisis whereas jewellery purchases saw a plunge downward.(See: Gold demand in India slumps by 83 per cent )
