Aug. 9 - Gold strikes a new record as investors dump riskier assets amid fears that political leaders are failing to tackle debt crises in Europe and the United States. Penny Tweedie reports.
As world stock touched 11 month lows - gold was striking new record highs. Investors around the world were dumping riskier assets and buying up the yellow shiny stuff amid fears that political leaders are failing to tackle debt crises in Europe and the United States. Vice President of Korea's Gold Exchange Choi Eun Gyu said the reaction had been immediate. (SOUNDBITE) (Korean) VICE PRESIDENT OF KOREA GOLD EXCHANGE CHOI EUN-GYU SAYING: "From yesterday, the gold price has been going up sharply. Even we can not estimate how much it will rise in a day." Gold - a traditional refuge from financial storms - topped 1, 770 US dollars an ounce - the latest in a string of record highs. It was still changing hands as an investment in many jewellery shops. Nick Parsons from National Australia Bank said the price was likely to continue to rise unless more stocks were released from central bank holdings. SOUNDBITE: Nick Parsons Head of Markets Strategy at NAB Capital, saying: (English) "There's no reason to think that gold will stop this side of 2,000 dollars an ounce - the only thing that would make it stop is concerted policy action from global monetary authorities. " But on Tuesday in China the new high prices had scared off shoppers. Gold shops in Hong Kong, usually crowded with mainland tourists, were almost empty. Penny Tweedie, Reuters.