Gold price hit record high $1,500/ounce on Wednesday. The threat of a downgrade to the United States’ triple-A credit rating this week and fresh worries over euro zone debt fueled fears over the outlook for both the dollar and the euro.
“Gold has been acting as a currency in its own right, and that is why we are up at $1,500,” said Simon Weeks, head of precious metals at the Bank of Nova Scotia. “There is an awful lot of bad news in the price. The S&P comment the other day has given us the final kicker to get up here.”
Gold has long been seen as the ultimate haven from risk. During the financial crisis that upset markets in 2009 and 2010 it was heavily bought on that basis, but its rally has since taken on a drive of its own.
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