Gold at new record high

Spot gold touched a new record high and was headed for the biggest weekly gain since May, as global investors continued to seek refuge in the precious metals amid lingering concerns about global economic growth. Gold for immediate delivery rose as much as US$7.72, or 0.6%, to US$1,282.97 an ounce and traded at $1,279.55 at 11:44 a.m. in London on Friday. Gold prices are up 2.7% this week. Gold for December delivery gained as much as 0.8% to US$1,284.40 an ounce and was last at US$1,280.60 on the Comex in New York.



Silver traded 2.2% from US$21.355 an ounce, the highest price since 1980. Silver for immediate delivery in London added as much as 1% to US$20.995 an ounce, the highest price since March 2008, and was last at US$20.8825. The metal is up 24% this year. The gold-silver ratio, a measure of the number of silver ounces required to buy an ounce of gold, dropped to 61.21, its lowest in eight months.

Gold typically moves inversely to the US currency. The Dollar Index, which measures the greenback’s strength against six major counterparts, is down 2.3% this month as the outlook for the US economy worsened. Gold is up 2.1% this month. Gold is set for a 10th annual gain as investors flock to the bullion amid lingering sovereign debt problems in the eurozone and the prospect of slowing global economic growth.