Gold prices hit a new peak today, with investors continuing to seek a safe haven for their cash as fears about the global economic outlook refused to die down. US gold futures have seen their biggest one day rally in four months, rising from $1,245 an ounce yesterday to a record $1,271 before edging back to $1,269. Traders said the current uncertainty was prompting investors to shy away from currencies - especially with governments around the world effectively printing money to shore up the financial system - as well as equities and bonds. Gold investors have now replaced industry users as the main buyers of the metal, while a number of commodity funds have floated on the stock market in the past two years. Rising interest from funds has been one of the main drivers of the gold price in recent years. Today's movement has been exaggerated by weakness in the dollar, which has fallen to a 15 year low against the yen and a nine month low against the Swiss franc. The current price compares to the $250 to $300 an ounce Gordon Brown received when he sold large chunks of the UK's gold reserve between 1999 and 2002. Meanwhile other precious metals are also in demand, with platinum reaching its highest level since early August.

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