Gold tops US$1,700 as investors seek refuge
Published:Tuesday | August 9, 2011 | 12:00 AM
The price of gold streaked past US$1,700 an ounce for the first time Monday.
Investors, beset by worries about the US debt downgrade, Europe's financial crisis and slowing global growth, sought safety in the metal as stocks tumbled around the world.
Gold's allure stems in part from fears that the world's major economies are dangerously indebted. Its value, unlike that of a currency, doesn't hinge on whether countries can make their bond payments.
Gold's price has nearly doubled in price since the start of 2009, and its climb accelerated this summer.
The metal has soared as the appeal of the dollar - the world's biggest reserve currency and traditionally a safe bet for investors - has ebbed.
Gold settled at US$1,718 per ounce.
Still, adjusted for inflation, an ounce of gold remains below its 1980 peak of US$850, which translates into about US$2,400 in today's dollars.
- AP