Concerns over slowing economic recovery force price of gold up and stocks down The price of gold was at its highest in almost eight weeks in New York, as concerns of slowing economic recovery and the possibility of a double-dip recession led many to invest in the 'safe-haven' option. Following the slow recovery, stocks fell in European and Asian markets and US equities went into their fifth straight decline. World demand for gold rose by 36 per cent to 1,050 tonnes, reaching a record quarterly high of £26.1bn in value, according to the latest report published by the World Gold Council on Wednesday. A 13 per cent gain was seen this year, amounting to a record $1,266.50 an ounce in June. Strong growth in the physical "retail" gold sector was reported from China, where the stock market witnessed a 121 per cent boom. Demand for physical gold in European markets increased in retaliation to the sovereign debt crisis and fears of a double-dip. Germany and Switzerland have seen the strongest growth in the demand for gold so far.

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