The price of gold topped $1,500 an ounce for the first time today on fears over high inflation.
The price of gold topped $1,500 an ounce for the first time today as a weakened dollar plus fears over high inflation and countries' debt attracted investors to the safehaven precious metal.
Gold reached $1,502.32 an ounce earlier this morning, before dipping back under the landmark barrier to stand at $1,499.33 on the London Bullion Market.
Meanwhile, sister metal silver meanwhile reached a 31-year high of $44.48 an ounce.
Gold is seen as a safe store of value in troubled economic times. Gold began its surge towards $1,500 on Monday after ratings agency Standard & Poor's revised its outlook on US sovereign debt to 'negative' from 'stable'.
S&P's move challenged Washington's gold-star 'AAA'-rated standard as it warned that politicians seemed unable to agree a plan to reduce a huge budget deficit, which is running at around 10% of gross domestic product.
The downgrade had also sent global share prices tumbling on Monday, while it came amid growing concerns over global inflation, with China, India and the euro zone struggling to control prices.
Gold prices have risen by 6% since the start of the year, breaking a series of record highs along the way. They breached $1,000 for the first time in March 2008.
Meanwhile, oil prices rose in Asia this morning as traders monitored developments in the Middle East and North Africa, where political unrest has rocked governments in the past few months.
US crude rose 83 cents to $109.11 a barrel, while Brent North Sea crude gained 60 cents to $121.93.
