Gold’s price has surged to a record high above $1250/oz yesterday as worries about the scope of the eurozone debt crisis and its effect on recovery pushed investors towards the perceived safety of gold.
After Fitch’s comment that Britain’s deficit challenge was formidable, The European stocks fell for the third day and the pound weakened.
According to GFMS CEO Paul walker, gold is expected to trade between $1050/oz and $1300/oz for the rest of 2010 and it may also rise to $2000/oz if the sovereign crisis spread beyond Europe. It may even surpass the platinum price.
In the early evening, gold increased to $1254.50/oz in New York and also reached highs in sterling, euros, and Swiss francs. Throughout the year, it has gained 13% because of investors losing trust and confidence in currencies.
BusinessDay – Europe debt crisis drives gold price to fresh high: