Gold rises to record as slowing growth spurs investor demand

PTI Updated - August 06, 2011 at 03:53 PM.

Gold today climbed to a record as concern that global economic growth may be slowing boosted demand for the metal as a protection of wealth.

Gold gained $22, or 1.4 per cent, to $1,643.70 an ounce on the Comex, a level never seen before. Silver also rose 1.4 per cent to $39.86 an ounce.

Manufacturing indexes in the US, Europe and China declined in July, raising concern that the global recovery is losing momentum.

Gold fell yesterday after the House of Representatives passed a measure to raise the US debt limit and cut federal spending.

Gold is up 15 per cent this year, heading for an 11th straight annual gain, the longest winning streak since at least 1920 in London.

Holdings of the metal in exchange-traded products rose for a sixth day yesterday, climbing 1.4 tonnes to a record 2,153.6 tonnes.

The Bank of Korea bought 25 tonne from June to July, lifting its reserves to 39.4 tonne, the central bank said and plans for additional purchases.

Published on August 2, 2011 13:56