Gold at $950 After Record High

AFX News Limited
February 22, 2008

LONDON (Thomson Financial) – Gold was steady heading into the afternoon in London, consolidating below the 950 usd mark after hitting a fresh record-high yesterday on heightened fears of a recession in the US.

Dollar weakness and recession fears have seen money pouring into gold, with investors using bullion as an alternative investment to the most common form of currency reserves and as a store of wealth during the ongoing economic turmoil.

Inflation concerns are also providing support, with oil still close to the 100 usd mark and costs rising in the US and Europe, the prospect of a return to stagflation has piqued buying interest in gold.

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