Gold hits new record high

[] — – The gold price shot through a fresh all time high on Tuesday afternoon after loses earlier in the day.

The precious metal shot back through the US$1 300 mark to trade at $1 307.58 and was last quoted $11.25 higher than its close at $1 306.09 an ounce.

A strong dollar and profit taking saw gold trade lower on Tuesday morning when it fixed at $1 289 in London.

The latest surge in the price was sparked by weaker than expected consumer confidence and manufacturing data out of the US.

Reigniting concerns over the health of the US economy, the data contributed to the US dollar’s slump against major currencies including the euro.

The euro was at new five-month highs against the dollar at 1.3509 during the afternoon session and was last bid at 1.3546 against the greenback.

Dow Jones Newswires reported that private research group Conference
Board’s index of consumer confidence fell to 48.5 in September from a
revised 53.2 in August.

The September reading was far worse than the 52.0 expected by economists and is the lowest reading since February.

A separate report showed economic activity among manufacturers in the central Atlantic region weakened in September, the Federal Reserve Bank of Richmond reported.

The bank’s manufacturing index slipped to -2 from 11 in August. Readings on shipments, service revenues, and retail sales revenues were also in negative territory. Numbers below zero indicate falling activity.