US econ­omy a golden risk

Townsville Bulletin - - Investor -

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.

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