Gold hits record high as economic worries surface

The price of gold hit a record high today – and, in what will be seen as confirmation that the world economic outlook is worsening, Goldman Sachs says it could rise still further.  

Gold now costs $1,282 (£820) an ounce. Investors tend to buy the precious metal when they see economic trouble on the horizon, because they believe it will maintain its value. Concerns over the prospects for an economic recovery and the eurozone debt crisis have not helped matters this year.

"The gold price hit a new all-time high again today, against a sluggish economic backdrop and uncertain public finances in Europe and the United States," said Marcus Grubb, managing director of investment at the World Gold Council.

Goldman Sachs today predicted gold will continue its record-breaking price rise to $1,300 per ounce within six months, saying that any further fiscal stimuli on the part of central banks "would likely accelerate the move to our six-month price target and provide upside risk to our forecasts".

Read a full report at the Guardian. ·