Gold hits historic record high

Gold has hit a record high near US$1,260 an ounce as momentum triggered by buying of the metal as a haven from sovereign and financial risk pushed prices through technical resistance to near their previous peak.

Spot gold hit a high of US$1,257.85 an ounce and was bid at US$1,256.45 an ounce, against US$1,243.40 the day befor. U.S. gold futures for August delivery also hit a record US$1,260.90, and were later up US$9.20 at US$1,257.90.

The precious metal has risen nearly 15 percent since the end of 2009, fuelled by sovereign risk in the euro zone, historically low interest rates, and concern over the stability of paper currencies.

The dollar fell to three-week lows against the euro today, and a one-month low versus the Swiss franc, pressured by disappointing U.S. data, which helped push U.S. Treasury yields to their lowest in a week.

Growth concerns also pressured industrial commodities, with oil prices falling more than $1 per barrel on signs economic expansion in the world's top two oil consumers may not be as rapid as expected, while base metals declined.