Gold price hits new high

The price of gold struck a record high level above 1,217 dollars an ounce in trading here on Wednesday as the US currency weakened against the euro.
Gold hit 1,217.23 dollars on the London Bullion Market one day after breaking through the 1,200-dollar barrier for the first time.
After reaching a new high on Wednesday, gold pulled back slightly to trade at 1,214.30 dollars at about 0855 GMT.
Gold has smashed record after record over recent days and weeks on the back of inflationary fears and increasing moves by central banks to diversify assets away from the dollar, which has weakened against the European single currency.
A falling greenback makes dollar-denominated gold cheaper for buyers holding stronger currencies, pushing up demand for the metal and eventually its price.
In European foreign exchange trading on Wednesday, the euro rose to above 1.51 dollars.
The yellow metal, whose two main drivers are jewellery and investment buyers, has also won favour in the uncertain economic climate which has been fuelled by Dubai’s debt crisis. Gold is traditionally viewed as a safe-haven investment.