Gold hits new record high!
NEW YORK - April 5, 2011 - Gold prices rose to settle at a record high above $1,452 ounce Tuesday, as new peaks in crude oil and grains fueled inflation fears and a downgrade of Portugal's credit rating fed safe haven demand.
Bullion prices broke out after a struggle to sustain new highs in the last month, and silver soared to a 31-year peak after Federal Reserve Chairman Ben Bernanke suggested he was committed to complete a $600 billion stimulus program as scheduled in June.
"What it shows is that big money continues to believe gold will go higher... because Bernanke wants to grow at any cost," said Axel Merk, portfolio manager of the $600 million Merk Mutual Funds.
"The other reason for gold to go up is that there was a downgrade in Portugal, so people realize there are still some issues," he added.
