Gold hits record high above $1,228
Hong Kong, May 12, 2010
Gold opened at an all-time high of $1,228 an ounce in Hong Kong on Wednesday, as traders sought safety after a $1 trillion European rescue failed to put to rest fears of euro zone debt contagion.
The precious metal closed in Asia on Tuesday at $1,208.00 but later climbed as high as $1,224.82 an ounce in European trade and $1,230 in US.
Analysts said the commodity was likely to maintain its safe haven role while other markets remained vulnerable.
The previous record for the metal was set on December 3 last year when it reached $1,226.56.
Over the past three weeks, gold has sharply inverted its typical inverse correlation with the dollar. The metal is now instead trading at a positive 0.84 correlation for the past 25 days.
The metal also rose to its strongest since May 2009, as the gold/oil ratio rose to over 16. Gold priced in euros and Swiss francs also hit record highs at 975.65 euros an ounce and 1,370.78 francs an ounce respectively. -Reuters