US economy a golden risk
GOLD struck a new record high at $ US1434.50 an ounce on Tuesday as worries spread that the surging price of oil could fuel inflation and dampen economic growth.
The price on the London Bullion Market jumped more than $ US14 an ounce from Monday to top last December’s record of $ US1431.25, before falling off to below $ US1434. On the New York Comex exchange, the price topped out at $ US1434.40, a record for that market, before pulling back slightly.
The jump came after oil prices rose again on Libyan unrest and US Federal Reserve chief Ben Bernanke warned a sustained rise in oil prices could potentially threaten US economic growth.
‘ ‘ Sustained rises in the prices of oil and other commodities would represent a t hreat both t o economic growth and to overall price stability,’’ the US central bank chief said.
‘‘ We see ( asset) reallocation into gold and silver markets,’’ said Rich Ilczyszyn of Lind-Waldock.