LONDON - The dollar fell to a new record low against the euro on Wednesday, with the euro breaching the 1.53-dollar level for the first time in its history.
Gold price hits fresh record high in London
The price of gold reached a new record high of 990.53 dollars an ounce on Wednesday, with a number of factors pushing the value of the precious metal higher, dealers said.
Gold is seen as a safe haven in times of economic uncertainty and is a hedge against inflation.
There are widespread fears that the US economy is lurching into recession and record oil prices of more than 100 dollars per barrel have raised inflationary pressures.
Furthermore, demand for gold has increased in line with falls in the value of the dollar against other currencies.
The US unit struck a new low of 1.53 dollars against the euro on Wednesday.
Dollar-denominated commodities like gold and oil tend to gain from the weak US currency because a fall in the dollar makes them cheaper for buyers using other currencies.
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